Marketing Communications Demand Creation

Transcription

Marketing Communications Demand Creation
Marketing
Communications
Demand Creation:
Marketing
Executive Study
By
Barbara A. Pellow
Gannett Distinguished Professor,
School of Print Media
Patricia Sorce, Ph.D.
Professor, College of Business
Franziska Frey, Ph.D.
Professor, School of Print Media
A Research Monograph of the
Heather Banis
Printing Industry Center at RIT
Rochester Institute of Technology
October 2003
No. PICRM-2003-06
Marketing Communications
Demand Creation:
Marketing Executive Study
By
Barbara A. Pellow
Gannett Distinguished Professor
and Chair, School of Print Media
Patricia Sorce, Ph.D.
Professor, College of Business
Franziska Frey, Ph.D.,
Professor, School of Print Media
Heather Banis
Rochester Institute of Technology
A Research Monograph of the
Printing Industry Center at RIT
Rochester, NY
October 2003
PICRM-2003-06 © 2003 Printing Industry Center at RIT— All rights reserved.
With Than k s
The research agenda of the Printing Industry Center at RIT and
the publication of research findings are supported by the
following organizations:
��
ii
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
Table of Contents
Executive Summary ............................................................................3
Introduction .......................................................................................9
Method .......................................................................................... 13
Results ..............................................................................................15
Summary of Results..........................................................................31
References.........................................................................................33
Appendix A: SIC Codes Used In Sample Selection......................... 35
Appendix B: Summary of Survey and Survey Responses................. 37
Appendix C: Results by Marketing
Communication Budget Size.................................................... 57
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
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Copyright 2003 Printing Industry Center at RIT— All rights reserved.
Executive Summary
For the past several years, many graphic arts
industry analysts and market research firms
have predicted that the growth of digital color
and variable data is about to explode. So far,
however, growth has failed to meet market
expectations. Several hypotheses are associated
with the subdued market growth. The following factors are most frequently cited:
•
•
•
Lack of a strong value proposition
for digital color and personalization.
Contributing to this is the relatively
low incidence of documented ROI
metrics for digital color or personalization for marketing materials.
Limited availability of accurate data
for targeted or versioned marketing
campaigns. If the data do exist, the
cost associated with transforming data
into a usable form is high.
The migration to electronic media
options for direct communication
with customers.
As part of the investigation into adoption of
digital color printing technologies, the Printing
Industry Center at RIT embarked on a research
initiative to gain an understanding of the relationship between the agency, corporate marketing executive, and print services provider. This
report focuses specifically on how instrumental
the corporate marketing executive is in initiating the demand for marketing materials that
require digital printing.
Specific research objectives for this study
include:
1.
Defining the dynamics between the
corporate marketing executive, the
printer, and the creative agency rela-
tive to media decisions and campaign
direction.
2.
Understanding how media are selected and how print media are perceived
and used within corporations.
3.
Evaluating the corporate marketing executive’s level of digital printing technology and that individual’s
current use of 1:1 communications
solutions.
4.
Understanding how database technologies are currently used within corporations and to what extent these technologies are integrated into corporate
printing capabilities.
5.
Defining the measures for campaign
effectiveness utilized by marketing
executives today.
A sample of 1,999 unique records was randomly selected from the Dun and Bradstreet list.
They were contacted by phone and asked to
participate in a 20-minute interview. Of the
205 completed interviews, there were 55 financial services firms, 100 manufacturing firms, 21
retail firms and 29 firms classified as “other.”
CORPORATE MARKETING
DEPARTMENTS: THE
ADVERTISING BUDGET
In a difficult economy, one of the areas of
greatest scrutiny in corporate America is the
marketing budget. This should be good news
for the world of digital printing, customization, and personalization. Corporate marketing executives need to maximize the ROI of
each marketing dollar spent. The marketing
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
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Executive S u m m a r y
executives surveyed spent significant dollars
on marketing communications, with annual
expenditures equating to an average of 6.9%
of corporate revenues. Respondents indicated
that mass print advertising comprised 35% of
expenditures in the preceding year, followed by
sales collateral (16%), Internet-based activities
(14.5%), and direct mail (14.1%). Digital print
technologies could have a direct impact on 30%
of the budget allocation (sales collateral and
direct mail) by providing improved customization and enhanced targeting.
Marketing executives with reduced marketing budgets and with ROI pressure are looking for proven techniques that will help them
achieve better business results. When executives
were asked why they initiated change in the
media mix, 11% indicated that the change was
designed to reach new markets, and 10% indicated its primary purpose was to save money.
Many of the firms surveyed also increased activity in direct mail (12%), e-mail marketing
(10%), and printed materials (9%). Creative
cost-effective solutions will appeal to the corporate marketing executive and ultimately drive
digital color growth. We are seeing several
examples of this in today’s market. While the
marketing budget is dispersed across several
different media, sales collateral (16%) and
direct mail (14%) made up an average of 30%
of total spending.
United Stationers, the largest U.S. wholesale
distributor of business products ranging from
office supplies to furniture, developed a direct
marketing and sales-collateral management
program called Star Club. This easy-to-use
Web interface tool for the company’s network
of more than 5,000 dealers enables the dealers
to create full-color customized brochures and
mailers online and print them on a digital color
output device. The objective of the program is
to better manage collateral costs, to add new
customers, and to grow existing customers as
well as reactivate inactive customers. It is more
than just a “pretty” customized marketing piece.
Dealers report response rates of up to 35% since
the program launch.
IBM offers its value-added resellers a similar
Web-based system called Campaign Designer.
The value-added resellers can clearly iden-
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tify the benefits. IBM Business Partner David
Gimza from SoftSmith Systems stated, “It was
so easy and our savings of time and money was
huge, just huge with Campaign Designer. We
created something in about 15 minutes that
could have literally taken months to produce
and would have cost a lot more money than we
paid. Three days after the [Campaign Designerbased] mailing we did some telephone followup. We uncovered an IBM ThinkPad lead
and won a $150,000 sale by being in the right
place at the right time thanks to this campaign”
(IBM).
York UPG, one of the largest independent
supplier’s of heating, ventilating, air-conditioning, and refrigeration equipment in the
U.S. and abroad, uses a solution called BuildA-Brochure(tm) from JGSullivan Interactive.
Using the Build-A-Brochure(tm) application, York dealers are able to produce customized marketing content. They create their own
custom headlines, insert their customer’s name,
add contact information, and have the ability to
select from a variety of company and product
images. The marketing objectives are simple.
York wants to reduce printing and paper costs;
offer fast and timely delivery; ensure up-to-date,
accurate product and service information; and
enhance customer relationship management
(CRM) with personalized, individually tailored
marketing pieces.
CRM AND THE
TECHNOLOGY
INFRASTRUCTURE
CRM is at the core of any customer-focused
business strategy and includes the people,
processes, and technology associated with
marketing, sales, and service. In today’s hypercompetitive world, organizations are pursuing CRM solutions to present a common view
of the customer across the organization. These
systems are designed to integrate information
systems and contact center implementations
that allow the customer to communicate via any
desired channel. The implementation of CRM
solutions is the infrastructure catalyst that will
drive the growth of personalized digital print
solutions.
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
E x e c u t i v e S u mmary
Historically, CRM investments have occurred in
a very narrow market. Because of the enormous
implementation costs associated with enterprise-wide CRM projects, they were limited to
Fortune 1000 companies. CRM spending by
small and medium-sized businesses is expected to exceed that by larger enterprises in the
future, partly because of newly available pricing
and software architecture models. Vendors like
Seibel, PeopleSoft, and Oracle are developing
less expensive versions of software and moving
into the mid-size-company market. This will
allow more businesses to afford CRM solutions
and improved data-gathering techniques.
The Printing Industry Center data indicated
that CRM systems were not prevalent; only
21% of respondents indicated that they had
CRM systems in place. Even if relationship
marketing goals were present, the infrastructure
was still too weak to support implementation.
The respondents were asked to indicate if they
maintained a customer database. Ninety-four
percent of respondents maintained a database
internally, and almost half of the respondents
(48%) updated their databases daily. There
was no consistency in the software applications
used to manage customer data. Respondents
identified more than 160 different software
applications that were in use for customer data
management.
CRM implementation weaknesses became
apparent when respondents were asked how
they populated database information. The most
frequent response, at 79%, was manual data
entry via paper forms. Fifty-eight percent of
the respondents used telephone sales call center
data. Web site data capture was used by 48% of
respondents.
WHERE DOES
PERSONALIZATION FIT?
Limited implementation of CRM systems links
directly to the marketing executive responses on
personalized campaign management. Seventyfive percent of respondents indicated that
they used personalization in their marketing
campaigns. In the preceding year, approximately
25% to 30% of the campaigns included personalization. The disappointing aspect of the vari-
able-data results was that 50% of the production jobs were a simple mail merge, and 19%
combined address and numerical data in fixed
fields. Only 8% blended variable text, numerical data, and graphics.
Corporate marketing executives were asked to
identify the areas where personalization would
have the highest potential impact. The top two
were improved response rates and enhanced
customer retention. Achievement of these objectives requires development and delivery of an
offer that is relevant and differentiated in the
eyes of the consumer. The document services
provider will need to demonstrate how digital
color solutions and personalization can deliver a relevant value proposition that increases
response rates and improves customer retention.
Obstacles to personalization persist in the
market. Respondents identified key issues
related to inadequate customer information on
their customer base and information acquisition; lack of resources for implementation, cost,
and technology limitations. Effective customized communication implementation starts with
good data. Information needs to be gathered
from all relevant departments in the analytical process. Internal departments often retain
traditional boundaries and can be reluctant to
share information across those boundaries. The
sales organization frequently fails to collect the
customer data essential to driving marketing
initiatives. Customer service may not collect
information critical to customer retention.
Companies do not always see data quality as
an important consideration in delivery of the
CRM projects that will ultimately drive relevant personalized communications. The critical
issue for digital document services providers is
the time required for corporations to build the
information base.
RELIANCE ON
THE AGENCY: THE
MARKETING EXECUTIVE
PERSPECTIVE
Many firms rely on advertising agencies to
assist with the planning and implementation
of marketing campaigns. Only 53% of those
surveyed indicated that they had used an agen-
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
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Executive S u m m a r y
cy in the past 12 months. Of these, 70% were
using agencies on a project-by-project basis,
while 30% worked on retainer. Corporate
executives were asked if they provided direction to or took direction from agencies on
campaign strategies. Sixty-five percent of the
corporate marketing executives indicated that
they provided direction, 2% took direction,
and 32% collaborated with the agency. These
results suggested that educating the corporate
marketing executive on media options and digital technology is critical. When asked if they
had been shown samples of communication
materials demonstrating the new printing technology, only 36% reported that they had. Based
on our findings relative to the limited number
of retainer relationships, it was clear that the
many corporate marketing executives define
the projects and outsource implementation to
agency resources.
The marketing executives were asked what
services they outsourced to agencies. The leading responses included advertising production
(58%), creative development (49%), graphic
design (42%), media buying (35%), and sales
promotion/collateral development (32%).
WHEN TO USE PRINT
MEDIA AND WHY?
Today’s corporate marketing executives are
faced with a vast number of media options. As
recently as 10 years ago, businesses had only
print, TV, and radio as communication outlets
to the masses. With the growing availability of
wireless and Internet technologies, communication options now include PDAs, electronic
billboards, blimps, cell phones, and even gasstation pumps. Marketing executives realize
that a critical objective is to utilize media to
more effectively target defined audiences and
communicate frequently updated information
and promotions. More than ever, the use of
multimedia and cross-media strategies is critical
to successful business communications.
Marketing executives were asked when they
used print media for specific marketing activities. They felt that print was most effective for
new product introductions (62%), promotions
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and special offers (42%), improving brand
awareness (41%), and sales support materials
(41%).
The Print-Buying Decision
Process
The survey of corporate marketing executives clearly demonstrated that these executives
play a major role in the print-buying decision.
Thirty-six percent of the corporate marketing
executives surveyed indicated that the agency
purchased print on their behalf, while 64%
used their internal corporate procurement function for this purpose. Of the firms for which
the advertising agency purchased printing, 43%
said the final printer selection was a joint decision, and 31% indicated that they left the decision to the agency.
Corporate marketing executives were also
increasing utilization of in-plant print shop
resources as internal skill levels and technology improved. One-third of the respondents
outsourced all of their print; 32% did the
design work in-house and outsourced the print;
and 28% tried to utilize in-house print resources wherever possible, outsourcing only particular print processes. Regarding collateral, 43%
of respondents reported that they are increasing
the amount of collateral printing in-house due
to the new design and printing technologies
available to them.
Another significant trend has affected the way
companies buy print: most companies are
consolidating the number of suppliers they deal
with. Respondents indicated that they worked
with an average of three printers and had relationships with these printers for at least two
years.
Marketing executives also identified key factors
(ranked from 1 to 10) that they considered
when selecting a print services provider. Based
on the pressure that the marketing executive
is under to meet deadlines and deliver a quality product, the first priority was dependability and the second was quality. Ease of doing
business and turnaround time ranked third and
fourth. Price was fifth on the marketing executives’ list.
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
E x e c u t i v e S u mmary
HOW ARE RESULTS
MEASURED?
The results of campaigns were most frequently measured by corporate marketing (75%).
Thirteen percent of the time there was a collaborative effort by both the agency and the client,
and 10% of the respondents used a third party.
eral in-house due to new design and
production capabilities.
2.
The print services provider needs
to link its solutions with the objectives that are most important to the
corporate marketing executive. Key
reasons for switching to different
media included the ability to reach
new markets or to reduce cost. The
print services provider must demonstrate that digital color is the most
cost-effective alternative for successfully reaching target markets. The
value proposition needs to be succinct
and backed with quantitative examples
showing how the technology has yielded a return on the marketing investment.
3.
In identifying high-potential corporate opportunities, the print services
provider should focus efforts on firms
that are committed to CRM solutions.
While their CRM systems may not
yet be fully implemented, in the long
term these organizations will offer
higher levels of potential for targeted
campaigns.
4.
The print services provider needs to
understand the print-buying process.
In some instances the corporate
marketing executive makes the print
purchase decision. There are also occasions when the agency takes the lead
in print buying. The printer will need
to look at the total decision-making
structure to understand how best to
approach an account.
5.
Print services providers should ensure
that as they work with corporations
on campaigns, success metrics are
in place. A demonstrable ROI will
provide corporations with a greater justification for buying marketing programs that are customized or
versioned.
6.
Relevant personalization, beyond
simple mail merge, is not widely
used. As part of the corporate market-
There was little consistency in how success was
measured. The number of sales leads was the
most frequent measurement cited by respondents, at 50%. A change in sales was the second
most common response at 49%, and the
response rate for a direct-mail piece followed
at 47%. At a time when marketing budgets are
being challenged, developing the right metricsand communicating those metrics at the senior
executive and board level-is critical.
LESSONS FOR THE PRINT
SERVICES PROVIDER
The major message for the print services provider resulting from this research is that focus on
both the corporate marketing executive and the
agency is essential to business expansion and the
continued growth in the digital color market.
Companies are using agencies on a projectby-project basis more often than on a retainer
basis. This means that they are providing significant direction on the media-buying decisions.
However, in some instances, the corporate
marketing executive delegates the print-buying
activity to the agency.
The print services provider needs to consider
these key points in developing a relationship
with the corporate marketing executive:
1.
The print services provider should be
encouraged that an average of 6.9% of
corporate revenue is spent on marketing communications. Of those expenditures, approximately one third of the
budget is spent on either sales collateral or direct mail. Digital color and
expanded document services can have
a direct impact on these two application areas. However, this is a doubleedged sword. Forty-three percent of
corporate marketing executives report
that they are printing more collat-
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
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Executive S u m m a r y
ing education initiative, the print
services provider should have examples of campaigns that have yielded
results. Lack of quality data is the
biggest single obstacle to successful campaigns. To the extent that
the print services provider can assist
with gathering data on customers or
prospective customers for campaigns,
the market can accelerate.
7.
Print services providers need to understand that price is not the key determinant in vendor selection. While
the print services provider must be
competitive, it is far more important
to demonstrate dependability and
quality.
HOW SHOULD THE
SUPPLIERS OF PRINTING
EQUIPMENT AND
SOFTWARE HELP?
Printing industry equipment vendors want to
support print providers in volume-building
activity. As noted above, the amount of marketing dollars spent on collateral and direct mail
represents significant page-volume opportunities for the digital print user base.
The equipment vendors need to support
market development activity, with emphasis on:
1.
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2.
Appropriate educational events and
trade publications should be identified
for reaching the corporate marketing
executive. Vendors should participate
in building awareness in these venues.
3.
Tools to simplify implementation
of customized communications
programs need to be developed. This
is particularly important in linking
printing applications to common
internal database marketing applications.
4.
Equipment delivered to the market
must be able to satisfy the agency and
marketing executive requirements for
dependability and quality. The print
services provider must have appropriate samples and statistical data to
help communicate the fact that digital printing is dependable and that it
offers quality without excuses.
This is a time of great change in the world of
media. The industry has weathered change in
the past and has not only survived but also
thrived on it. While marketing budgets are
being challenged in today’s economy, marketing executives are looking for efficient ways
to communicate and share business information. The use of digital technology is going to
be critical in the media mix and, if managed
successfully, will offer opportunities for revenue
and business growth.
The vendors need to support market
development through the publication
of case histories that link the value of
digital color technology with a return
on marketing investment.
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
Introduction
The demand for personalized printed marketing materials is influenced by two important
types of print customers: the marketing executives of manufacturing or service firms and the
advertising agencies that help them plan their
communication strategies. The purpose of this
research is to examine the role of the marketing executive in the demand for these materials.
The role of the advertising agency is explored
in another research monograph published by
the Printing Industry Center at RIT, entitled
“The Advertising Agency’s Role in Marketing
Communications Demand Creation” (PICRM2003-05).
The demand for personalized print communication by marketing executives is determined
by the presence of three critical factors: the use
of a relationship marketing strategy, the availability of the appropriate customer information
within a firm, and the perception of the effectiveness of print versus other forms of media for
delivering marketing messages. This introduction will present an overview of each of these
factors. The section will conclude with the
research objectives for this study.
Use of Relationship Marketing
Strategies and Database
Marketing Tactics
The goal of many CRM initiatives is to build a
relationship between a business and its customers. This will lead to improved retention rates,
higher repeat purchase behavior, lower propensity to switch, and, ultimately, higher profits
(Reichheld, 1996). One tangible manifestation
of the commitment to a relationship marketing
focus for the organization is the use of a CRM
system. Once thought of as just a technology
solution, CRM has evolved into a customercentric philosophy that permeates an entire
organization. The best CRM systems connect
information from all data sources within an
organization to provide one holistic view of
each customer in real time. It allows customerfacing employees (in such areas as sales,
customer support, and marketing) to make
immediate and informed decisions on everything from cross-selling opportunities to target
marketing strategies and even to competitive
positioning tactics.
The sales of CRM software applications grew
rapidly in the late 1990s. In 2001, CRM
spending was nearly $10 billion, with nearly
half of that spent on marketing applications
including call centers and Web sites (Joachim,
2002). However, although executives want their
CRM systems to expand relationships with
existing customers, make it easy for customers to do business with them, and cross-sell
through personalization, companies often
do not have the capability to do this (Patrick
Marketing Group, 2002). In particular, Jupiter
Research reported that only 17% of companies
that have implemented CRM systems use the
customer analytics tools necessary for creating
relevant personalizing content (Joachim). In
addition, although most IT executives expect
to increase spending in CRM technology in the
coming years, only 7% of the spending will go
into improving and profiling customers.
According to META Group, “CRM is still
suffering from lackluster press and poorreviews,
due more to poor public relations than to a lack
of real results.” A recent Butler Group report
found that 70% of CRM implementations
fail, while a Gartner study found that approximately 55% of all CRM projects failed to meet
expectations. In a Bain & Company survey
of 451 senior executives in the previous year,
CRM ranked in the bottom three categories
among 25 popular tools evaluated for customer
satisfaction (Mello, 2002). However, a 2002
Morgan Stanley survey of 225 chief information officers demonstrated that implementing
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
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Introduct i o n
customer relationship management is still a
priority on the IT agenda, despite widespread
reports of dissatisfaction and failure.
While there has been much research about
implementation failures and future demand,
there is not a lot of research that assesses the
penetration of CRM systems. One study of
40 firms in the UK found that slightly more
than half were implementing a CRM system
(Abbott, Stone, & Buttle, 2001). However, this
estimate might be high compared to a more
representative sample because the UK study
included primarily information technology
services firms.
A firm does not need an enterprise-wide CRM
system to engage in relationship marketing.
A database of customer information is all that
is required. An effective database marketing
program requires companies to have extensive,
clean data in sufficient detail to be used for
marketing communications. According to the
most recent PricewaterhouseCoopers Global
Data Management Survey, “The new economy
is the data economy. . . Companies are entering a crucial phase of the data age without full
control or knowledge of the one asset most
fundamental to their success—data” (Kenyon,
Lambert, Benge, & Jordon, 2002). How good
is customer data in a wide range of firms?
What kinds of data do firms typically store
about their customers? How is it being used in
marketing campaigns?
Insights into these questions can be found
in the Direct Marketing Association (2002)
(DMA) survey of 286 corporate members who
conduct mail or e-mail marketing programs.
Eighty-two percent of the respondents had
a housefile of customers, and 81% reported
using personalization in their postal mailing.
In addition, 84% reported that the key use of
their database was building relationships with
customers. These results would suggest that
useful databases for marketing are common.
However, the survey was of executives who
already use direct mail or e-mail in their
marketing programs and is not a representative
sample of U.S. businesses.
10
In their surveys, Abbott, Stone, and Buttle
(2001) found that most respondents agreed
that the customer data held within their firms
are not as good as they should be. While a large
majority (82.5%) had customer databases,
most of those felt the data were accurate only
50% to75% of the time. Nearly all respondents
(92.5%) agreed that more data would help
marketers. In addition, the nature of the data
firms do hold is relatively shallow. While 75%
have the basic customer information and 63%
store the campaign history, only 50% capture
and use the buying patterns. Without transaction data, only low-level personalization is
possible.
In sum, questions remain about the data infrastructure capabilities of typical firms and the
ability of these firms to use existing data for
personalized marketing communications.
Perception of Print Media
With a relationship marketing strategy and
infrastructure in place, will firms select print,
specifically direct mail, as their medium of
choice? Personalized printing is one tactic of
direct marketing and is a popular means of
communicating with customers. Universal
McCann data reported in Marketing News
(“Marketing Fact Book,” 2003) indicated that,
in 2002, direct mail was the second-largest
category of media expenditures at $46 billion.
Expenditures on direct mail rose by $6.4 billion
from 1998 to 2002. The growth of direct mail
was 16.3%, roughly equal to the overall media
expenditure growth rate at 17.5%. However,
other forms of interactive media grew at a faster
rate. For example, Internet expenditures rose
by $4.9 billion (365%) during this five-year
period, from a very small base of just over $1
billion.
Unfortunately, e-mail marketing expenditures
are not reported in the Universal McCann data.
In the 2002 DMA study noted above, 68%
of respondents reported that e-mail marketing activity increased from 2001 to 2002, while
another 30% reported that it had remained the
same (DMA, 2002). In a survey of U.S. advertising and marketing executives, respondents
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
I n t ro duction
reported that their marketing communication budgets would increase by 17% for e-mail
and 9% for online marketing activities, versus
reductions of 6.9% for direct postal mail and
13.4% for catalogs (DoubleClick, 2002).
What are the overall perceptions of the effectiveness of printed media versus other forms?
Insights can be gained from reviewing the
Universal McCann expenditure data. For
newspaper ads, the third largest media category, expenditures remained flat from 1998 to
2002 at $44 billion per year. Magazine expenditures during that five-year period made a
modest 4.5% increase from $10.5 billion to
$11 billion, but business papers showed a drop
of 6% to about $4 billion. In contrast, spending for cable TV witnessed a 90% growth in ad
revenues, from $8.5 billion to $16.3 billion in
that time period, while radio ad revenue grew
by 25.2% from $15 billion to $18.8 billion.
However, broadcast TV spending rose only
7.4% from $39.2 billion in 1998 to $42 billion
in 2002. While these data may indicate some
evidence for the movement away from print
media in general, the specific nature of the
media selection process must be known.
Research Objectives
The purpose of this research study is to examine the role that the marketing executive
plays in the demand for personalized printed
communications. The following are the specific
research objectives for the marketing executive
sample:
1.
Defining the dynamics between the
corporate marketing executive, the
printer, and the creative agency relative to media decisions and campaign
direction.
2.
Understanding how media are selected and how print media are perceived
and used within corporations.
3.
Evaluating the corporate marketing
executive’s level of awareness of digital
printing technology and that individual’s current use of 1:1 communications solutions.
4.
Understanding how database technologies are currently used within corporations and to what extent these technologies are integrated into corporate
printing capabilities.
5.
Defining the measures for campaign
effectiveness utilized by marketing
executives today.
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
11
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Copyright 2003 Printing Industry Center at RIT— All rights reserved.
Method
SAMPLE
PROCEDURE
The sample was drawn from the Dun and
Bradstreet list targeted to financial services
firms, manufacturers, and retail firms. A sample
of 4,312 unique records was randomly selected from the list as follows: financial services
(n=55), manufacturing (n=100), retail (n=21),
and other (n=29). The specific SIC categories
sampled are listed in Appendix A.
A screener, reading from the script below, identified the role of the interviewee within the
firm.
A total of 1,999 firms were contacted by phone
to produce the 205 completed surveys. Of the
remainder, 946 refused to complete the survey
and 130 were not qualified.
QUESTIONNAIRE
The questionnaire was designed in accordance
with the research objectives. Insights into the
specific questions to include were obtained by
conducting in-depth interviews with a number
of marketing executives about their interactions with advertising agencies, their media
attitudes of the questions and their experiences
with personalized print. The final wording and
order of the questions is presented in Appendix
B along with the percentage responding to each
question.
Hello, this is (INSERT NAME) calling
from (research firm). We are conducting research on behalf of the Rochester
Institute of Technology Printing Industry
Center to gain insight on a variety of issues
regarding printed communications from
the perspective of Marketing Executives.
If you are qualified and complete the
survey, you will receive an honorarium of
$50. Would you please tell me the name of
the Vice President of Marketing or another
senior executive in your company who is
responsible for recommending strategies for
the selection of media for your company’s
marketing campaigns? (The following titles
might qualify: VP Marketing, Marketing
Director or Executive VP.)
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
13
14
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
Results
The complete results by type of firm and size of
firm are presented in Appendix C. Significance
tests were conducted on all questions to determine if there were differences among the firms
classified by their industry (financial services,
manufacturing, retail, or other) and size of
marketing budget (under and over $1 million).
The overall frequency of responses and the
statistically significant differences among firms
will be discussed in this section.
CHARACTERISTICS OF
RESPONDENTS
graduate degrees. The respondents were asked
about their roles in selecting media for their
companys’ marketing campaigns. Nearly 70%
responded that they were part of a group of
decision-makers while one quarter indicated
that they were the sole decision-makers regarding the selection of media.
Almost half of the respondents were from
smaller firms (under 60 employees), and 26%
were from larger firms (with 240 employees or
more). Sixty-seven percent of the respondents
characterized their firms as business-to-business
companies; only 23% characterized their firms
as business-to-consumer companies.
The total survey sample consisted of 205
marketing executives, of whom 67% were male.
Nearly all had graduated from college or had
Size of Firm
(# of employees)
Total
0
14%
1 - 20
17%
21 - 60
17%
61 - 129
13%
121 - 240
14%
241 - 1000
16%
1001+
10%
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
15
Results
OBJECTIVE 1:
Defining the dynamics between the corporate marketing
executive, the printer, and the creative agency relative to media
decisions and campaign direction.
Marketing Communications Budget
The distribution of the size of annual marketing communications budget in shown in the table
below; the median was $300,000. The average size of marketing communications budgets was 6.9%
of revenue (with a median of 2%). The respondents indicated that this figure did not include sales
force compensation.
What is the size of your marketing communications budget for
the U.S. market in dollars?
Percent
Less than $449,000
56%
$450,000 - $999,999
15%
$1,000,000 - $9,999,999
20%
$10,000,000 or more
10%
Use of Advertising Agency
In the year preceding the survey, 53% of the firms (n=109) used the services of an advertising agency. Almost half of them used two or more agencies. Those with larger budgets utilized advertising
agencies more often (p-value of 0.023). Financial services firms (62%) and large firms (62%) used
agencies more often than manufacturing or retail/other firms.
From the first agency mentioned, 58% received advertising and print production services, 49%
received creative development services, and 42% received graphic design services. The majority of
these firms (70%) used their advertising agency on a project-by-project basis, while the other 30%
worked on retainer.
16
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
Results
What services did agency #1 provide you?
(Indicate all that come to mind)
Percent
Advertising production/print production
58%
Creative development
49%
Other services
44%
Graphic design
42%
Media planning/buying
35%
Sales promotion/collateral development
32%
Brand consulting
28%
Direct marketing
28%
Corporate identity
26%
Digital branding/Web development
25%
Public relations
20%
Trade show services
14%
Customer relationship management
8%
For those firms using more than one agency, graphic design was the top service.
The respondents were then asked if they provided or took direction from their advertising agency in
regards to campaign strategy. Nearly 65% of the respondents indicated that they provided direction
and 32% of firms collaborated with their advertising agency.
When asked if their firm made a change in its marketing strategy that resulted in a change in the
media mix, 39% answered yes. Of these, 46% indicated that they made a change in their Internet
marketing strategy, primarily increasing their Web presence. Other firms increased marketing activities in the following areas: direct mail (12%), e-mail marketing (10%), and print (9%).
The respondents were then asked to indicate why they made the changes. Eleven percent indicated that the change was to reach a new market, 10% indicated that it was to save money, and 8%
reported that the change was made to execute a new strategy. Almost all respondents (91%) said that
the recommendation to change the media mix was initiated by the firm.
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
17
Results
OBJECTIVE 2:
Understanding how media are selected and how print media
are perceived and used within corporations.
Media Choices
In the preceding year, the respondent firms’ media budgets were spent on print advertising (35%),
sales collateral (16%), Internet-based activities (5%), and direct mail (14%). Firms with advertising
budgets in excess of $1 million utilized radio advertising more often, while smaller firms relied more
heavily on Internet-based activities.
In the last year, what percent of your media
budget was spent on each?
Mean Percent
Print advertising
35%
Sales collateral
16%
Internet-based activities
15%
Direct mail
15%
Other media
8%
Email campaigns
4%
Radio advertising
4%
Television advertising
3%
Outdoor or transit advertising
2%
Financial services firms used more direct mail than the retail/other or manufacturing firms.
Manufacturing firms used more Internet-based activities and less broadcast media than financial
services or retail firms. There was no difference by marketing budget size.
Mean percent by
Firm Type
Manufacturing
Mean Percent
Financial Services
Mean Percent
Other/Target
Mean Percent
Direct mail
12%
21%
14%
Internet
19%
8%
11%
Television
advertising
.2%
8%
5%
Radio
advertising
.8%
7%
5%
Note: Highlighted values show the highest value for each media type (in rows).
18
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
Results
Printing Services Procurement
The majority of respondents (64%) indicated that their advertising agency did not buy printing on
their behalf. There was no difference by firm type or size of budget.
The respondents who reported using an agency to buy printing were then asked who typically chose
the printing services provider. The agency played a role in nearly 74% of those decisions. Responses
showed that companies with advertising budgets of less than $1 million more often made the decision themselves (29% of the time, versus 15% of the time for those with large budgets).
Who typically makes the choice in printing service provider selection?
The advertising agency
26%
Our company
43%
31%
Our company and
the advertising agency
make a joint decision
Printing Capabilities
More than half of the respondents (56%) indicated that they had in-house print capabilities. More
in-house printing was found for manufacturing firms (64%) than for the other two categories
(financial 43% and retail/other 55%). Nearly one-third (32%) completed all of the design work inhouse and outsourced the print production. Twenty-eight percent printed primarily print in-house
and outsourced only for a particular print process. Thirty-four percent of the firms outsourced all
of their printing to a print provider. Organizations with large advertising budgets (in excess of $1
million) utilized brokers more often and also used outsourcing processes more heavily. Those with
smaller budgets tended to print primarily in-house and outsourced only for a particular process.
What are your company’s printing capabilities?
Percent
We outsource all of our printing to a print provider
34%
We do all the design work in-house and outsource
print production
32%
We primarily print in-house, we only outsource for a
particular print process (i.e., wide format)
28%
We deal with a broker
5%
Decline to answer
3%
Not sure
1%
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
19
Results
Respondents were asked what types of technologies they used to communicate with their customers.
Ninety-three percent used laser printing, 88% used black-and-white copiers, 69% used inline inkjet
printing, and 67% communicated through digital color or production copiers.
The firms worked with an average of three printers. When asked to state the typical length of a relationship between their company and a printing services provider, nearly 60% indicated that their
relationship had lasted from one to five years. The average length of relationship was two years.
On average, what is the typical length of a relationship
between your company and a printing service provider?
Percent
1-5 years
61%
6-10 years
28%
11-15 years
4%
16-20 years
5%
21-25 years
2%
50 years
1%
The respondents were also asked if they had started using a new or additional printing service
provider in the past year. Thirty-nine percent responded yes. The most important factors in choosing a printer were dependability, print quality, and ease of doing business. The factor of least importance was unique capabilities. Companies with smaller advertising budgets (under $1 million) were
more price sensitive, while those with larger budgets valued turnaround time and the ability to print
on a large range of stocks.
Selecting Print Service Provider
20
Agreement
On 10-point scale
Dependability
6.59
Print quality
6.41
Ease of doing business
6.11
Turnaround time
5.79
Price
5.58
Ability to print on a wide range of paper stocks
4.21
Binding and finishing capabilities
3.92
Personalization
3.74
Geographic proximity
3.70
The specific printing technology used by the provider
3.59
Unique capabilities
3.23
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
Results
OBJECTIVE 3:
Evaluating the corporate marketing executive’s level of
awareness of digital printing technology that individual’s
current use of 1:1 communications solutions.
Media Perceptions
The respondents were asked to rate the following on a scale from 1 to 5, where 1 means completely
disagree and 5 means completely agree. The majority (81%) indicated that targeted campaigns outperform mass-market campaigns. When questioned about their knowledge and perceptions of the new
printing technology for personalization, 62% of the respondents reported they were aware of it, but
only 36% had been shown samples of it by an ad agency or had been shown creative ideas for using
personalization strategies. Regarding their own use of the new design and print technologies, 43%
reported that they were increasing their use of in-house printing of sales collateral.
Indicate the extent to which you agree or disagree with each
of the following statements.
(5-point scale: 1= Completely Disagree, 5=Completely Agree)
Percent Indicating
4 or 5
Targeted campaigns outperform mass-market campaigns
81%
I am aware of the new print technology capabilities
for personalization
62%
Given the new design and production technologies, our company
is increasing the in-house printing of our own sales collateral
43%
Broadcast media advertising is best for brand building
40%
I have been shown samples of printed communication material to
illustrate the capabilities of new technologies by an ad agency.
36%
My advertising agency has presented creative ideas for
personalization strategies
36%
When the company needs to know the direct ROI from a campaign,
I use a direct response medium
33%
Broadcast media advertising is best for driving store traffic
27%
We get better response rates with email campaigns than printed mail
26%
There were few differences found among firms. Financial services firms were more likely to agree
that they were aware of the personalization technologies (73%), compared to retail/other (64%) and
manufacturing firms (54%). Manufacturing firms were less likely to agree that broadcast media were
best for brand building (25%) than financial (54%) or retail/other firms (53%). Firms with budgets
in excess of $1 million used broadcast advertising for brand building and were more aware of new
print technologies for personalization. There were no differences by marketing budget size.
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
21
Results
The respondents were given various situations and were asked to indicate always, sometimes, or
never in regards to how often they recommended print as a marketing communications tool. Of the
respondents who indicated always, 62% recommended print when introducing a new product, and
42% recommended it for promotions or special offers. Additionally, the respondents indicated that
they always recommended print as a marketing communications tool when increasing brand awareness (41%) and for sales support (41%).
How often for the following situations or marketing
objectives do you recommend print as a marketing
communication tool? (Always, sometimes or never)
Percent Indicated
Always
Introduce a new product
62%
Promotions or special offers
42%
Increase brand awareness
41%
Sales support
41%
Brand positioning
28%
Customer retention/loyalty
26%
Lead generation
25%
Customer acquisition
25%
To drive retail traffic
23%
Cross-selling/up-selling
19%
Firms with advertising budgets in excess of $1 million recommended print more often for customer
acquisition and to drive retail sales. Conversely, those with budgets under $1 million recommended
print more often for cross-selling/up-selling.
22
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
Results
Use of Personalized Communication Strategies
When asked if they ever used personalized communication in their marketing campaigns, 75% of
the respondents indicated yes. The respondents were then asked what percentage of their campaigns
involved personalized communication with their customer in the past year. The data revealed a Ushaped function with the median value of 25% (mean of 33%).
Percentage of campaigns that involved personalized communication with the customer
Percentage indicating yes
25%
20%
15%
10%
5%
0%
0-9%
10-19%
20-29%
30-39%
40-49%
50-69%
70-100%
or more
Percentage of campaigns involving personalization
Respondents were then asked to distribute 100 points to indicate to what degree those communications were personalized. Exactly half (50%) of the respondents indicated that they used the
lowest level of customization, variable address and/or salutation, common to mail/merge application. As the level of complexity of the customization increased, the proportion of those who used it
decreased. Only 8% indicated that their campaigns involved a high degree of personalization (variable text or numerical information and variable graphics). There were no differences by firm size or
type in the use of the various levels of personalization.
If agency work involved personalization
60%
50%
40%
30%
20%
10%
0%
Variable address
and/or salutation
Variable address
and/or numerical
information
that goes into
fixed fields
Variable address,
text, and/or
numerical information that goes
into dynamic fields
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
Variable text
or numerical
information and
graphics
Variable text
or numerical
information and
variable graphics
23
Results
Respondents were asked to rate the impact of personalized communication on a number of marketing objectives. The greatest impact was viewed as improving response rates and improving customer
retention (a mean rating of 7 out of 10). Personalized communication was seen to have the least
impact on reducing print and mailing costs (a mean rating of nearly 6 out of 10).
Rate the following five attributes in terms of the impact
that personalized communication has on each attribute.
(10-point scale:
1=no impact, 10=extremely positive impact)
Mean rating
on 10-point scale
Improving response rates
7.1
Improving customer retention
7.05
Improving the reader’s ability to locate information
6.43
Improving reader’s ability to understand and retain
information
6.4
Reducing print and mailing costs
5.98
The respondents whose work involved a low level of personalization (n=50) were asked to
identify the obstacles they encountered in using personalized communications in their marketing
campaigns. The lack of resources (money, databases, people, or knowledge) and lack of need were
the top obstacles mentioned.
What are the obstacles to using personalized
communications in your marketing campaigns?
24
Percent
Cost
20%
Lack of need/customer base not suitable
20%
Lack of a suitable database/need for database
18%
Lack of resources (including; time, manpower,
change of personnel and software packages)
10%
Lack of knowledge of agency or firm
10%
Lack of awareness
6%
Lack of results (not successful on earlier attempts)
or concern about lack of impact
4%
Design constraints/Lack of creative flexibility
2%
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
Results
OBJECTIVE 4:
Understanding how database technologies are currently used
within corporations and to what extent these technologies are
integrated into corporate printing capabilities.
Marketing Databases
The respondents were asked to indicate if they maintained a database of their customers internally
or if they outsourced it. The majority of the respondents (94%) indicated that they maintained the
database internally. Five percent outsourced it, and 1% did not have a database of customers.
When asked how often their database is updated, either with new customers or updates of information about current customers, nearly half of the respondents (48%) indicated that they updated
their databases daily and 13% did it hourly. Seventeen percent of the firms updated their databases
monthly, and 15% updated them weekly.
How often is the database updated?
50%
40%
30%
20%
10%
0%
Hourly
Daily
Weekly
Monthly
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
Semiannually
Annually
25
Results
The respondents were then asked how the new data was entered into the database. Manual data
entry was the most common method (79%), followed by entry by telephone sales representatives
(58%) and Web site data capture (48%). When asked if their customer databases were clean, 60%
of the respondents indicated that they were (4 or 5 on a five-point scale of cleanliness). Those with
an advertising budget in excess of $1 million more often collected data at retail outlets or downloaded it from outsource services vendors, as the relationship is significant.
How does the new data get entered into the database?
Percent
Manual data entry from paper forms
79%
A telephone sales representative enters the data
(e.g,, call centers)
58%
Website data capture of visitors or online ordering
48%
Automatic data entry via email contact with customer
39%
Downloading from outsource services vendor
(e.g., fulfillment service)
30%
Data collection at retail outlets
24%
Other
15%
Software Applications
The respondents were asked to indicate what software applications they used to manage their
customer database. Although only 64 respondents answered this question, 160 software packages
were listed. Seventeen percent of the respondents custom-built their software and another 17% used
a Microsoft software application.
The respondents were asked if they used a CRM system. Only 21% indicated that they did use a
CRM system. The software they used for their CRM system varied widely. There were no differences by size of marketing budget or industry type in use of a CRM system.
When respondents were asked which capabilities they used in managing their customer databases,
nearly 60% said they used sales force management, 31% said they used data mining, and 28% said
they used campaign management. Six percent were not sure what capabilities their firms used to
manage their customer databases.
26
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
Results
Which of the following capabilities do you use in managing
your customer database?
Percent
Sales force management
57%
Data mining
31%
Campaign management
28%
None of these
21%
Data cleansing software
20%
Digital asset manager
6%
Not sure
6%
Financial services firms used more data mining (48%) and campaign management tools (46%) than
other types of firms. When broken down by size of firm, larger firms were more likely to use data mining
(39%) than smaller firms (21%). Firms with larger advertising budgets ($1 million plus) use data mining,
campaign management, and data cleansing software significantly more than those with smaller budgets.
One open-ended question asked what it would take to create an enterprise-wide solution to more effectively leverage customer information. Software was frequently mentioned as a solution. However, better
integration among existing programs or acquiring better information about
customers were also mentioned.
What does your firm need in order to create an enterprise-wide
solution to more effectively leverage the information about your
customers with your marketing messages?
Software (generic), campaign management, integration or
new equipment
Percent
17%
Implementation of current CRM/DB, clean DB; accessible to all
9%
More money
9%
Nothing
9%
New CRM package, program, system
8%
More staff; more MIS people
8%
Culture change/ strategy change, internal communication
6%
Internet presence/ improved web integration
5%
Some way to reach customers better; more customer research;
data mining; better personalization or targeting
5%
Training; more expertise
3%
Communication/more advertising
3%
More time
2%
Dealer issues
1%
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
27
Results
The respondents were also asked if they integrated their marketing database and CRM packages
with their in-house printing technology. Slightly more than half (56%) said yes. Those respondents
were then asked to rate how well their marketing database and CRM packages were integrated with
their in-house printing technology. Nearly half indicated that they were integrated relatively well
(40% reported a 7, 8, 9, or 10 on a 10-point scale).
How well are marketing and CRM packages integrated
with in-house technology?
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
High
Medium
Low
OBJECTIVE 5:
Defining the measures for campaign effectiveness
utilized by marketing executives today.
The respondents were asked if they always, sometimes or never used the following factors when
measuring the results of a marketing campaign. The four highest measures were sales leads (50%),
change in sales (49%), response rate of a direct mail piece (47%), and customer retention (34%).
Companies with advertising budgets in excess of $1 million measured results by retail traffic/store
counts significantly more than those with smaller budgets; those with smaller budgets used sales
leads significantly more.
28
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
Results
Factors For Measuring Results Of A Marketing Campaign
Percent Indicating
Always
Sales leads
50%
Change in sales (before/after measure)
49%
Response rate of a direct mail piece
47%
Number of orders placed
46%
Customer retention
34%
Change in number of calls to an 800 number
25%
Change in number of calls to an 800 number
15%
Other methods
13%
Retail traffic/store counts
12%
Post-advertising awareness measure
11%
When asked who typically measured the results of a campaign, 75% of the respondents indicated
that they measured the results internally, 13% indicated that it was a collaborative effort with the
advertising agency, and 10% indicated that it was a third party.
Who measures the results of a campaign?
10%
1%
You
13%
A collaborative effort
A third party
76%
The advertising agency
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
29
30
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
Summary of Results
The key findings that address each of the
research objectives for this study are presented
below:
•
Over half of respondents had in-house
printing capabilities that they used to
communicate with customers. These
included laser printing (93%), blackand-white copiers (88%),
inline ink-jet (69%), and digital color/
production copiers (67%).
A small proportion (21%) had offset
capabilities.
•
Forty-three percent agreed with the
statement, “Given the new design
and production technologies, our
company is increasing the in-house
printing of our own sales collateral.”
•
Approximately one third of respondents reported that they outsourced
all printing, another third designed
in-house and then outsourced printing, and the remaining third printed
almost everything in-house.
•
The typical firm worked with an
average of three printers, and the
average length of the relationship
with a printer was two years.
•
The criteria for printer selection were
(in descending order of importance)
dependability, quality, ease of doing
business, turnaround time, price, and
specific printing technology.
1. Defining of the dynamics between the
corporate marketing executive, the printer, and
the creative agency relative to media decisions
and campaign direction.
•
•
•
Only 53% of the firms reported
using the services of an advertising
agency in the preceding year. Of those
who did, the most frequently used
services were advertising production
and print production (58%), creative
development (49%), graphic design
(42%), and media planning and
buying (35%).
A majority of marketing executives
reported that they were taking the
lead in providing direction to their
agencies in campaign strategy (65%),
and 32% reported that they worked
in collaboration with the agency.
Only 39% reported that they changed
a marketing strategy in the last year
that resulted in a change of the
marketing mix.
2. Understanding how media are selected and
how print media are perceived and used within
corporations.
•
Print advertising was the top medium
in terms of advertising expenditures
(35% of expense) followed by sales
collateral, Internet, and direct mail.
•
Only 36% of firms reported that their
advertising agency purchased printing
on their behalf.
3. Evaluating the corporate marketing executive’s level of awareness of digital printing technology and that individual’s current use of 1:1
communications solutions.
•
In terms of awareness of the personalized printing technologies, 62%
of the respondents agreed that they
were aware of the technology, but
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
31
Summary o f R e s u l t s
only 36% reported that they had seen
samples from ad agencies.
•
Seventy-five of the firms reported that
they used personalized communications. However, only an average of
33% of their campaigns used personalized communications. Of those
campaigns, 50% were reported as
using only a mail-merge application.
•
The benefits of personalized communication were improved response rates
and improved customer retention.
•
The biggest obstacles in recommending personalized print were the cost,
lack of a suitable database, and inexperience.
4. Understanding how database technologies
are currently used within corporations and to
what extent these technologies are integrated
into corporate printing capabilities.
•
32
Ninety-four percent of marketing executives reported that kept
an internal customer database. The
primary capabilities of the database
were sales force management (57%),
data mining (31%), and campaign
management (28%).
•
Only 21% reported using a CRM
system.
•
Fifty-six percent of respondents
reported that their marketing databases are integrated with their printing capabilities. When asked how well
they were integrated, slightly less than
half gave a rate of high (7 to 10 on a
10-point scale).
5. Defining the measures for campaign effectiveness utilized by marketing executives today.
•
Firms are taking the lead in measuring
campaign effectiveness; 75% reported
that they do so.
•
The typical measures are number
of sales leads (50%), change in sales
(49%), number of orders placed
(46%), and response rate to direct
mail (47%).
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
References
Direct Marketing Association. The state of postal & e-mail marketing: New list trends & results.
(2002). New York: Author.
DoubleClick Inc. (2002, June). DoubleClick spring 2002 marketing spending index (executive
summary). Retrieved from www.doubleclick.com/us/knowledge_central/research/marketing_
spending/
IBM’s Campaign Designer Testimonials (n.d.). Retrieved April 21, 2004, from http://www1.ibm.com/partnerworld/pwhome.nsf/weblook/campaign_testimonials.html
Joachim, D. (2002, March 11). CRM tools improve access, usability. B to B, 87, 1, 31.
Kenyon, H., Lambert, R., Benge, J., & Jordon, W. (2002). Global data management survey: The
new economy is the data economy. PriceWaterhouseCoopers.
Mello, A. (2002, December 18). CRM failures: Don’t blame the tools. Retrieved September 2003
from http://techupdate.zdnet.com/techupdate/stories/main/0,14179,2902068,00.html
Marketing fact book. (2003, July). Marketing News, 37, 15-24.
Patrick Marketing Group. (2002, June). Key business and marketing trends survey analysis.
Retrieved September 2003 from http://www.the-dma.org/library/whitepapers/index.shtml
Reichheld, F. (1996). The loyalty effect: The hidden force behind growth, profits, and lasting value.
Boston: Harvard Business School Press.
Stone, M., J. Abbott, J. & Buttle, F. (2001). Integrating customer data into customer relationship
management strategy: An empirical study. Journal of Database Marketing, 8, 289-300.
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
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34
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
Appendi x A:
SIC Codes Used
in Sample Selec tion
Financial Services
Manufacturing
6021
6022
6029
6035
6036
6061
6062
6162
6211
6282
6311
6321
6324
6331
6399
6411
2434
2435
2436
2439
2441
3524
3531
3532
3533
3534
3535
3536
3537
3541
3542
3543
3544
3545
3546
3561
3562
3563
3564
3567
3569
3585
3586
National commercial banks
State commercial banks
Commercial banks, not chartered
Federal savings institutions
Savings institutions, except federal
Federal credit unions
State credit unions
Mortgage bankers and correspondents
Security brokers and dealers
Investment advice
Life insurance
Accident and health insurance
Hospital and medical service plans
Fire, marine, and casualty insurance
Insurance carriers
Insurance agents, brokers, and service
Retail
5231
5251
5311
5411
5441
5611
5621
5632
5641
5651
5661
5699
5712
5713
5714
5941
5942
5948
Paint, glass, and wallpaper stores
Hardware stores
Department stores
Grocery stores
Candy, nut, and confectionery stores
Men’s and boys clothing stores
Women’s clothing stores
Women’s accessory and specialty stores
Children’s and infants wear stores
Family clothing stores
Footwear
Miscellaneous apparel and accessory stores
Furniture stores
Floor covering stores
Drapery and upholstery stores
Sporting goods and bicycle shops
Book stores
Luggage and leather goods stores
Cabinets, wood
Hardwood veneer and plywood
Softwood veneer and plywood
Structural wood members
Nailed wood boxes and shook
Lawn and garden equipment
Construction machinery
Mining machinery
Oil and gas field machinery
Elevators and moving stairways
Conveyors and conveying equipment
Hoists, cranes, and monorails
Industrial trucks and tractors
Machine tools, metal cutting type
Machine tools, metal forming type
Industrial patterns
Special dies, tools, jigs, and fixtures
Machine tool accessories
Power-driven hand tools
Pumps and pumping equipment
Ball and roller bearings
Air and gas compressors
Blowers and fans
Industrial furnaces and ovens
General industrial machinery
Refrigeration and heating equipment
Measuring and dispensing pumps
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
35
Appendix A
Other
1389
1791
1799
5013
5021
5023
5047
5074
5078
5084
5091
5131
5137
7011
7213
7373
7389
7536
7999
8621
8699
8732
8742
8748
36
Oil and gas field services, not elsewhere classified
Structural steel erection
Construction special trade contractors, not elsewhere classified
Wholesale Trade-durable goods: Motor vehicle supplies and new parts
Wholesale Trade-durable goods: Furniture
Wholesale Trade-durable goods: Home furnishings
Wholesale Trade-durable goods: Medical, dental, and hospital equipment and supplies
Wholesale Trade-durable goods: Plumbing and heating equipment and supplies
Wholesale Trade-durable goods: Refrigeration equipment and supplies
Wholesale Trade-durable goods: Industrial machinery and equipment
Wholesale Trade-durable goods: Sporting and recreational goods and supplies
Wholesale Trade-non-durable goods: Piece goods, notions, and other dry goods
Wholesale Trade-non-durable goods: Women’s, children’s, and infant’s clothing
and accessories
Hotels, Rooming, Houses, and Other lodging places: Hotels and Motels
Personal Services: Linen supply
Business Services: Computer integrated systems design
Business Services: Business services, not elsewhere classified
Automotive Repair, Services, and Parking: Automotive glass replacement shops
Amusement and Recreation Services, not elsewhere classified
Membership Organizations: Professional membership organizations
Membership Organizations, not else where classified
Engineering, Accounting, Research, Manufacturing and Related Services: Commercial
economic, sociological, and educational research
Engineering, Accounting, Research, Manufacturing and Related Services: Management
consulting services
Engineering, Accounting, Research, Manufacturing and Related Services: Business
consulting services, not elsewhere classified
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
Appendix B:
Summary of Survey
and Survey Responses
A survey of 205 marketing executives was conducted in Spring 2003 by Harris Interactive. The
sample was drawn from the Dun and Bradstreet list targeted to financial services firms, manufacturers, and retail firms. A total of 1,999 randomly selected firms were contacted by phone to produce
the 205 completed surveys. Of the remainder, 946 refused to complete the survey and 130 were
not qualified. The table below reports the summary data for all respondents.
Total
Financial
Services
Manufacturing
Retail
Other
Target
Firm
Retail/
Other
Combined
n=205
n=55
n=100
n=21
n=29
n=50
0
14%
9%
15%
24%
10%
16%
1-20
17%
22%
7%
24%
34%
30%
21 - 60
17%
16%
22%
5%
7%
6%
61 -129
13%
13%
13%
14%
10%
12%
121-240
14%
20%
13%
0%
17%
10%
241-1000
16%
16%
18%
10%
14%
12%
1001+
10%
4%
12%
24%
7%
14%
Financial services firm
27%
100%
Manufacturing firm
49%
Retail firm
10%
Other target firm
14%
Questions
345-Size of Firm (# of employees)
Base
350-Firm Type
100%
100%
42%
100%
58%
425-Which of the following best describes your role in the selection of media for your
company’s marketing campaigns?
You are the sole decision maker regarding the
selection of media for your company’s marketing
campaigns.
25%
27%
28%
19%
17%
18%
You are one of a group of decision makers.
69%
69%
65%
76%
79%
78%
5%
4%
7%
5%
3%
4%
You recommend strategies for the selection of
media, but you have no role in the final decision.
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
37
Appendix B
Questions
Total
Financial
Services
Manufacturing
Retail
Other
Target
Firm
Retail/
Other
Combined
500-First, we would like to discuss your company’s marketing communications strategy. What is the
size of your marketing communications budget for the U.S. market in dollars?
Net answering
n=163
n=43
n=77
n=18
n=25
n=43
42
12
23
3
4
7
Less than $449,000
56%
51%
64%
18%
60%
42%
$450,000 - $999,999
15%
16%
17%
11%
8%
9%
$1,000,000 - $9,999,999
20%
21%
14%
39%
24%
30%
$10,000,000 or More
10%
12%
4%
33%
8%
19%
Not sure or decline to answer
505-What is the approximate size of your marketing communications budget for the U.S. market
as a percent of revenue?
Net answering
n=167
n=43
n=80
n=18
n=26
n=44
Not sure or decline to answer
38
12
20
3
3
6
0 percent of revenue
6%
2%
10%
0%
4%
2%
1-4 percent of revenue
59%
56%
61%
67%
54%
59%
5-9 percent of revenue
15%
9%
15%
33%
12%
20%
10-14 percent of revenue
10%
16%
10%
0%
4%
2%
15-100 percent or more of revenue
10%
15%
3%
0%
28%
15%
510-Does this budget include sales force compensation and support?
Net answering
n=203
n=54
n=99
n=21
n=29
n=50
Yes
14%
17%
10%
19%
21%
20%
No
86%
83%
90%
81%
79%
80%
515-In the last year, did you use the services of an advertising agency?
Net answering
n=204
n=55
n=99
n=21
n=29
n=50
Yes
53%
62%
57%
43%
34%
38%
No
47%
38%
43%
57%
66%
62%
520-How many different advertising agencies did you use?
Base: respondents using an ad agency
n=109
n=34
n=56
n=9
n=10
n=19
1
62%
62%
63%
78%
50%
63%
2
22%
18%
25%
0%
40%
21%
3+
16%
21%
13%
22%
10%
16%
525-What services did agency #1 provide you? (indicate all that come to mind)
Base: respondents using an ad agency
n=109
n=34
n=56
n=9
n=10
n=19
Graphic design
42%
47%
46%
22%
20%
21%
Brand consulting
28%
35%
25%
22%
20%
21%
38
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
A p p endix B
Questions
Total
Financial
Services
Manufacturing
Retail
Other
Target
Firm
Retail/
Other
Combined
Corporate identity
26%
26%
27%
11%
30%
21%
Creative development
49%
56%
52%
33%
20%
26%
Customer relationship management
8%
6%
11%
0%
10%
5%
Digital branding/Web development
25%
18%
32%
0%
30%
16%
Direct marketing
28%
41%
25%
0%
20%
11%
Media planning/Buying
35%
56%
25%
33%
20%
26%
Public relations
20%
21%
20%
22%
20%
21%
Sales promotion/Collateral development
32%
38%
32%
22%
20%
21%
Advertising production/Print production
58%
59%
63%
44%
40%
42%
Trade show services
14%
6%
23%
0%
0%
0%
Other services
44%
0%
0%
0%
0%
0%
n=9
n=10
n=19
900-Is agency #1 on retainer, or do you work with them on a project-by-project basis?
Base: respondents using an ad agency
Decline to answer
n=109
n=34
1%
n=56
2%
On retainer
30%
50%
16%
56%
10%
32%
Project-by-project
70%
50%
84%
44%
90%
68%
527-What services did agency #2 provide you? (indicate all that come to mind)
Base: respondents using 2+ agencies
n=41
n=13
n=21
n=2
n=5
n=7
Graphic design
39%
46%
38%
50%
20%
29%
Brand consulting
12%
0%
19%
0%
20%
14%
Corporate identity
17%
8%
24%
0%
20%
14%
Creative development
41%
62%
33%
0%
40%
29%
CRM
10%
8%
14%
0%
0%
0%
Digital branding/Web development
15%
8%
24%
0%
0%
0%
Direct marketing
22%
15%
33%
0%
0%
0%
Media planning/Buying
20%
23%
14%
50%
20%
29%
Public relations
10%
8%
14%
0%
0%
0%
Sales promotion/Collateral development
22%
23%
29%
0%
0%
0%
Advertising production/Print production
34%
46%
24%
50%
40%
43%
Trade show services
12%
0%
24%
0%
0%
0%
Other services
32%
15%
38%
50%
40%
43%
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
39
Appendix B
Questions
Total
Financial
Services
Manufacturing
Retail
Other
Target
Firm
Retail/
Other
Combined
905-Is agency #2 on retainer, or do you work with them on a project-by project basis?
Base: respondents using 2+ agencies
n=41
n=13
n=21
n=2
n=5
n=7
On retainer
15%
8%
15%
50%
20%
29%
Project-by-project
85%
92%
85%
50%
80%
71%
529-What services did agency #3 provide you? (indicate all that come to mind)
Base: respondents using 3+ agencies
n=17
n=7
n=7
n=2
n=1
n=3
Graphic design
29%
43%
29%
0%
0%
0%
6%
0%
14%
0%
0%
0%
35%
57%
29%
0%
0%
0%
6%
14%
0%
0%
0%
0%
CRM
12%
0%
29%
0%
0%
0%
Digital branding/Web development
18%
29%
14%
0%
0%
0%
Direct marketing
12%
0%
14%
50%
0%
33%
6%
0%
14%
0%
0%
0%
Public relations
29%
43%
14%
50%
0%
33%
Sales promotion/Collateral development
35%
29%
43%
50%
0%
33%
Advertising production/Print production
12%
0%
29%
0%
0%
0%
Trade show services
12%
9%
29%
0%
0%
0%
Other Services
41%
29%
57%
0%
100%
33%
Brand consulting
Corporate identity
Creative development
Media planning/Buying
910-Is agency #3 on retainer, or do you work with them on a project-by-project basis?
Base: respondents using 3+ agencies
n=17
n=7
n=7
n=2
n=1
n=3
On retainer
12%
0%
14%
50%
0%
33%
Project-by-project
88%
100%
86%
50%
100%
67%
535-In the majority of marketing campaigns you have been involved with in your current firm, are you
PROVIDING direction to the agency or TAKING direction from the agency regarding campaign strategy?
Base: respondents using an ad agency
n=109
n=34
n=56
n=9
n=10
n=19
Net answering
n=107
n=33
n=55
n=9
n=10
n=19
2%
3%
2%
0%
0%
0%
Providing direction to the agency
64%
52%
73%
67%
60%
63%
Taking direction from the agency
2%
3%
2%
0%
0%
0%
32%
45%
24%
33%
30%
32%
2%
0%
2%
0%
10%
5%
Not sure
Is a collaborative interaction
It all depends on the nature of the situation
or campaign
40
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
A p p endix B
Questions
Total
Financial
Services
Manufacturing
Retail
Other
Target
Firm
Retail/
Other
Combined
550-Now I am going to read you a list of media types. Please tell me, in the last year, what percent of your
media budget was spent on each? Keep in mind that the percentage acoss all media should add up to 100%.
Base
n=205
n=55
n=100
n=21
n=29
n=50
Print advertising
35%
30%
35%
45%
34%
39%
Direct mail
15%
22%
12%
18%
11%
14%
Radio advertising
4%
7%
1%
7%
4%
5%
Television advertising
3%
8%
0%
9%
1%
5%
Outdoor or transit advertising
2%
4%
1%
1%
1%
1%
Internet-based activities
15%
8%
19%
1%
19%
11%
Sales collateral
16%
15%
17%
12%
17%
15%
Email campaigns
4%
3%
4%
4%
5%
5%
Other media
8%
4%
11%
3%
8%
6%
555-In the past year, has your firm changed its marketing strategy that resulted in a change in the media mix?
Yes
39%
31%
45%
10%
52%
34%
No
61%
69%
55%
90%
48%
66%
556-Please describe the marketing strategy change your firm made that resulted in a change
in the media mix. (Multiple responses, n=103)
Base: respondents whose media mix changed
n=77
Internet presence
46%
Increased direct mail
12%
Email marketing
10%
Increased print
9%
Increased TV
8%
Cost reduction/Cut budget
5%
Increased radio
5%
Decreased print
5%
Revamped campaign/Marketing strategy
4%
Focused more on B2C
4%
Increased customer base
3%
Product development
3%
Reduced TV
3%
Changed design
1%
National branding
campaign
1%
Observed database/Customer behavior
1%
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
41
Appendix B
Questions
Total
Reduced internet
1%
Sales material
1%
Increased magazine
1%
Home based advertising
1%
Internal: crosstraining employees
1%
Reduced direct mail
1%
Increased newspaper
1%
Total % of multiple responses
Financial
Services
Manufacturing
Retail
Other
Target
Firm
Retail/
Other
Combined
127%
560-What were the reasons for the change in your firm’s marketing strategy?
Base: strategy change resulted in media mix
change
n=79
n=17
n=45
n=2
n=15
n=17
To save money
10%
6%
11%
0%
13%
12%
To reach a new target market
11%
12%
9%
50%
13%
18%
To “spice up” the look of our advertising
4%
0%
7%
0%
0%
0%
To execute a new strategy
8%
18%
4%
0%
7%
6%
To identify prospects
5%
6%
4%
0%
7%
6%
80%
76%
80%
50%
87%
82%
Other
565-Was the recommendation to change the media mix initiated by the advertising agency or your firm?
Base: strategy change resulted in media mix
change
Advertising agency
Firm
A collaborative effort between the agency and
your firm
n=79
n=17
n=45
n=2
n=15
n=17
5%
12%
2%
0%
7%
6%
91%
82%
93%
100%
93%
94%
4%
6%
5%
0%
0%
0%
570-Using a 5-point scale where 1 means “Completely Disagree” and 5 means “Completely Agree”,
please indicate the extent to which you agree or disagree with each of the following statements.
(Percentage indicates percentage of respondents who had an agreement rating of 4 or 5.)
Base
n=205
n=55
n=100
n=21
n=29
n=50
Broadcast media advertising is best for brand
building
40%
54%
25%
48%
57%
53%
When the company needs to know the direct ROI
from a campaign, I use a direct response medium
33%
37%
32%
40%
25%
31%
Given the new design and production technologies, our company is increasing the in-house
printing of our own sales collateral
43%
27%
53%
29%
52%
42%
I am aware of the new print technology
capabilities for personalization
62%
73%
54%
71%
61%
65%
42
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
A p p endix B
Questions
Total
Financial
Services
Manufacturing
Retail
Other
Target
Firm
Retail/
Other
Combined
Targeted campaigns outperform mass-market
campaigns
81%
87%
81%
81%
69%
74%
We get better response rates with email
campaigns than printed mail
26%
27%
24%
28%
29%
28%
Broadcast media advertising is best for
driving store traffic
27%
33%
23%
33%
21%
27%
I have been shown samples of printed communication material to illustrate the capabilities of new
technologies by an ad agency
36%
38%
36%
32%
31%
31%
My advertising agency has presented creative
ideas for personalization strategies
36%
37%
43%
6%
20%
20%
572-Using a scale from 1 to 10, where “1” means “No impact at all” and “10” means “An extremely
positive impact”, please rate the following five attributes in terms of the impact that personalized
communication has on each attribute.
(Percentage indicates percent of respondents who assigned a rating of 8, 9, or 10 to each attribute.)
Reducing print and mailing costs
33%
27%
35%
33%
34%
34%
Improving the reader’s ability to locate information
39%
40%
40%
43%
31%
36%
Improving response rates
42%
45%
40%
52%
38%
44%
Improving customer retention
46%
51%
42%
57%
41%
48%
Improving reader’s ability to understand and
retain information
32%
35%
31%
38%
24%
30%
575-Have you ever used personalized communication in your marketing campaigns?
Net Answering
200
52
98
21
29
50
Yes
75%
85%
70%
71%
76%
74%
No
25%
15%
30%
29%
24%
26%
580-In the past year, what percentage of your campaigns involved personalized communication
with your customer?
Base: has used personalizd communication
n=150
n=44
n=69
n=15
n=22
n=37
Net answering
n=148
n=44
n=69
n=14
n=21
n=35
0%
3%
2%
4%
7%
1 - 4%
8%
7%
7%
21%
5%
11%
5-9%
12%
9%
14%
21%
5%
11%
10-14%
12%
16%
6%
0%
33%
20%
15-19%
3%
2%
4%
7%
0%
3%
20-29%
16%
11%
22%
0%
14%
9%
40-49%
8%
7%
9%
21%
0%
9%
30-39%
6%
2%
7%
0%
14%
9%
50-69%
12%
18%
9%
7%
14%
11%
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
3%
43
Appendix B
Questions
Total
Financial
Services
Manufacturing
Retail
Other
Target
Firm
Retail/
Other
Combined
70-99%
15%
18%
16%
14%
5%
9%
4%
7%
1%
0%
10%
6%
100% or more
582-Now, I am going to read a list of extents to which you might personalize communications.
Please distribute 100 points among these five items to indicate how often you produce personalized
communications and to what degree they are personalized.
Base: has used personalized communication
n=143
n=43
n=66
n=13
n=21
n=34
Variable address and/or salutation
50%
51%
51%
55%
40%
46%
Variable address and/or numerical information
that goes into fixed fields
19%
20%
16%
19%
26%
24%
Variable address, text, and/or numerical information that goes into dynamic fields
14%
14%
15%
12%
15%
14%
Variable text or numerical information
and graphics
10%
9%
12%
5%
10%
8%
8%
6%
8%
9%
9%
9%
Variable text or numerical information and
variable graphics
585-What are the obstacles to using personalized communications in your marketing campaigns?
Base: those who have not used personalized
communications
n=50
n=8
n=29
n=6
n=7
n=13
Not sure or declined to answer
10
2
4
1
3
4
Lack of a suitable database
8%
25%
3%
17%
0%
8%
20%
13%
24%
17%
14%
15%
Design constraints/Lack of creative flexibility
2%
0%
3%
0%
0%
0%
Lack of knowledge of agency
2%
0%
3%
0%
0%
0%
Lack of need
6%
0%
3%
17%
14%
15%
Our own lack of experience with this new approach
2%
0%
0%
17%
0%
8%
Lack of results (Not successful on earlier attempts)
2%
0%
3%
0%
0%
0%
Lack of awareness
6%
0%
7%
17%
0%
8%
54%
50%
62%
50%
29%
38%
Cost
Some other obstacle
Q-586 - Please specify the other obstacles in using personalized communications. (Multiple responses, n=29)
Base
n=27
Customer base
33%
Lack of resources (including: time, manpower,
change of personnel and software packages)
22%
Technology
15%
Acquiring accurate information and relevant
customer databases
11%
Inexperience
11%
44
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
A p p endix B
Questions
Total
Achieving their target
4%
In B2B marketplace, do not know end user
4%
Cost
4%
No EQI
4%
Total % of multiple responses
Financial
Services
Manufacturing
Retail
Other
Target
Firm
Retail/
Other
Combined
108%
590-Now we would like to discuss how your firm typically measures the result of a campaign. I am going to
read you a list of ways you may or may not measure the results of a campaign. For each, please indicate if
you always, sometimes or never use this method. (Results indicate “Always” response)
Base
n=205
n=55
n=100
n=21
n=29
n=50
Sales leads
50%
33%
64%
15%
59%
41%
Number of orders placed
46%
40%
49%
48%
46%
47%
Change in sales (before/after measure)
49%
48%
42%
76%
55%
64%
Change in number of calls to an 800 number
15%
11%
15%
11%
25%
19%
Change in number of calls to an 800 number
25%
13%
30%
26%
32%
30%
Response rate of a direct mail piece
47%
49%
48%
47%
41%
44%
Retail traffic/Store counts
12%
7%
3%
55%
14%
31%
Post-advertising awareness measure
11%
13%
8%
19%
11%
14%
Customer retention
34%
35%
34%
33%
34%
34%
Other methods
13%
18%
8%
25%
10%
16%
595-Who typically measures the results of a campaign– you, the advertising agency, or a third party?
Net answering
n=204
n=55
n=100
n=21
n=29
n=50
75%
78%
74%
71%
79%
76%
1%
2%
3%
2%
A third party
10%
7%
12%
14%
7%
10%
A collaborative effort
13%
13%
14%
14%
10%
12%
You
The advertising agency
600-Now we would like to change topics and discuss marketing databases. Do you maintain a database
of your customers internally or do you outsource it?
Maintain internally
94%
91%
97%
75%
100%
90%
Outsource
5%
7%
1%
25%
0%
10%
We do not have a database of customers
1%
2%
2%
0%
0%
0%
605-How often is the database updated, either with new customers or updates of information about
current customers, such as sales transactions, contact with sales force, etc?
Base: respondents who maintain a database
internally or outsource
n=201
n=54
n=98
n=20
n=29
n=49
Net answering
n=195
n=54
n=95
n=19
n=27
n=46
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
45
Appendix B
Questions
Total
Financial
Services
Manufacturing
Retail
Other
Target
Firm
Retail/
Other
Combined
Hourly
13%
11%
17%
5%
7%
7%
Daily
48%
41%
53%
37%
56%
48%
Weekly
15%
11%
17%
26%
11%
17%
Monthly
17%
31%
8%
26%
15%
20%
Semi-annually
3%
4%
2%
5%
4%
4%
Annually
3%
2%
3%
0%
7%
4%
610-How does the new data get entered into the database?
Base: respondents who maintain a database
internally or outsource
n=201
n=54
n=98
n=20
n=29
n=49
Website data capture of visitors or online ordering
48%
39%
48%
60%
55%
57%
A telephone sales representative enters the data
(e.g. call centers)
58%
52%
66%
55%
45%
49%
Manual data entry from paper forms
79%
74%
82%
65%
90%
80%
Automatic data entry via email contact
with customer
39%
31%
41%
45%
45%
45%
Data collection at retail outlets
24%
41%
4%
70%
28%
45%
Downloading from outsource services vendor
(e.g. fulfillment service)
30%
41%
21%
30%
38%
35%
Other
15%
22%
14%
10%
10%
10%
620-Using a scale of 1 to 5 where “1” means: “Needs extensive cleaning” and “5” means “Clean,
no additional cleaning is needed”, how clean is the data you pull from your customer database?
Base: respondents who maintain a database
internally or outsource
n=201
n=54
n=98
n=20
n=29
n=49
Not sure
3%
0%
6%
5%
0%
2%
Decline to answer
1%
0%
2%
0%
0%
0%
Percentage indicates percent of respondents who
assigned a rating of 4 or 5
60%
69%
59%
53%
52%
52%
Percentage indicates percent of respondents who
assigned a rating of 1 or 2
15%
7%
17%
21%
21%
21%
5- Clean, no additional cleaning is needed
24%
31%
20%
26%
24%
25%
4
35%
37%
39%
26%
28%
27%
3
25%
24%
24%
26%
28%
27%
2
11%
7%
11%
21%
14%
17%
4%
0%
6%
0%
7%
4%
1-Needs extensive cleaning
625- What software applications do you use to manage your customer database? (Multiple responses, n=160)
Base: respondents who maintain a database
internally or outsource
n=201
Net answering
n=64
46
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
A p p endix B
Financial
Services
Manufacturing
Retail
Other
Target
Firm
Retail/
Other
Combined
n=201
n=54
n=98
n=20
n=29
n=49
Net answering
170
49
77
15
29
44
Yes
25%
33%
23%
7%
24%
18%
No
75%
67%
77%
93%
76%
82%
Questions
Total
In-house
17%
Access
16%
ACT
13%
Microsoft Excel
11%
Microsoft Works, Outlook
5%
Goldmine
4%
Microsoft Windows
3%
Siebel
3%
Outsource
3%
Oracle
3%
Global Shop
2%
Total % of multiple responses
80%
53 others -all having 1 or 2 respondents
at 1% = 35%
627-Do you use a CRM system?
Base: respondents who maintain a database
internally or outsource
628-What vendor software are you using for your CRM system? (Multiple Responses, n=35)
Base: respondents using
a CRM system
n=33
Custom
24%
Siebel
12%
Harland
12%
ACT
6%
Exite
3%
Goldmine
3%
Maxsell
3%
IMIN
3%
Junxure
3%
Maximizer
3%
Web based
3%
Oracle
3%
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
47
Appendix B
Questions
Total
On contact
3%
Salesforce.com
3%
SAP
3%
Telemagic
3%
Touchtone
3%
Unica
3%
Tour de Force
3%
Wallet share
3%
Outsource
3%
Total % of multiple responses
Financial
Services
Manufacturing
Retail
Other
Target
Firm
Retail/
Other
Combined
105%
630-Which of the following capabilities do you use in managing your customer database?
Base: respondents who maintain a database
internally or outsource
n=201
n=54
n=98
n=20
n=29
n=49
6%
9%
5%
10%
3%
6%
Data mining
31%
48%
23%
30%
28%
29%
Campaign management
28%
46%
19%
25%
28%
27%
Sales force management
57%
61%
61%
20%
62%
45%
Data cleansing software
20%
26%
10%
35%
31%
33%
None of these
21%
15%
23%
30%
21%
24%
6%
6%
8%
5%
0%
2%
Digital asset manager
Not sure
632-What specific Data Mining Software do you use? (Multiple responses, n=36)
Base: respondents using data mining
n=34
Custom
32%
Harland
12%
Goldmine
6%
Manual
6%
Generic
3%
Marquis
3%
Peachtree
3%
Sales logic
3%
SAP
3%
PRMS
3%
Microsoft Excel
3%
48
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
A p p endix B
Questions
Total
Outsource
3%
SBT (Santa Barbara Technologies)
3%
Modo One
3%
Impromtu and Sequel server
3%
Touchtone 2000
3%
Part of CRM package
3%
Unica
3%
Built into data processor
3%
Total % of multiple responses
Financial
Services
Manufacturing
Retail
Other
Target
Firm
Retail/
Other
Combined
101%
633-What specific Campaign Management Software do you use? (Multiple responses, n=34)
Base: respondents using campaign management
n=32
Custom
31%
Harland
13%
Microsoft
10%
Access
7%
ACT
7%
Affinium
3%
Siebel
3%
Maxsell
3%
Centrax
3%
Made to manage
3%
Marquis
3%
PRMS
3%
SAP
3%
Touche
3%
Unica
3%
Do not use any
3%
Total % of multiple responses
101%
634-What specific Sales Force Management Software do you use? (Multiple responses, n=71)
Base: respondents using sales force
management software
n=70
ACT
18%
Custom
18%
Goldmind
12%
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
49
Appendix B
Questions
Total
None
6%
Access
5%
Salesforce.com
5%
Lotus
5%
Harland
3%
Made to manage
3%
SAP
3%
Siebel
3%
SBT
1%
Advent AXYS
1%
AS 400
1%
Blue matrix
1%
Commence
1%
Data processor
1%
Manager Gold
1%
Maximizer
1%
Motivator
1%
Global Shop
1%
Phoenix System
1%
Platinum
1%
PRMS. EXCEL
1%
Excel
1%
Sales Logic
1%
Sales tracker
1%
Same sales automatic manage
1%
Symix
1%
XP
1%
Total % of multiple responses
Financial
Services
Manufacturing
Retail
Other
Target
Firm
Retail/
Other
Combined
100%
635-What specific Data Cleansing Software do you use? (Multiple responses, n=14)
Base: respondents using data cleansing software
n=13
Custom
15%
Access
8%
Data processor
8%
50
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
A p p endix B
Questions
Total
Through vendor
8%
Group One
8%
Marquis
8%
Norton
8%
Outsourced
8%
VAX system
8%
Sales Logic
8%
Smart addresser (NCOA)
8%
Pitney Bowes -Smart Mailer
8%
Total % of multiple responses
Financial
Services
Manufacturing
Retail
Other
Target
Firm
Retail/
Other
Combined
103%
640-Does your firm have in-house print capabilities?
Base: respondentswho maintain a database
internally or outsource
n=201
n=54
n=98
n=20
n=29
n=49
Net answering
n=200
n=54
n=98
n=20
n=29
n=49
Yes
56%
43%
64%
45%
62%
55%
No
44%
57%
36%
55%
38%
45%
645-Which of the following in-house capabilities do you use to communicate with your customers?
Base: respondents having in-house print capabilities
n=112
n=23
n=62
n=9
n=18
n=27
In-line inkjet printing (e.g. for financial
statements billing)
69%
74%
69%
67%
61%
63%
Offset printing (lithography)
21%
52%
8%
44%
17%
26%
Digital color/production copiers
67%
74%
60%
89%
72%
78%
Black and white copier (e.g. Xerox)
88%
91%
85%
89%
94%
93%
Laser printing
93%
96%
92%
78%
100%
93%
Other
6%
4%
6%
0%
11%
7%
Not sure
1%
0%
2%
0%
0%
0%
650-Do you integrate your marketing database and customer relationship packages with your
in-house printing technology?
Base: respondents having in-house
printing capabilities
n=112
n=23
n=62
n=9
n=18
n=27
4%
0%
3%
0%
11%
7%
Yes
51%
52%
45%
44%
75%
64%
No
49%
48%
55%
56%
25%
36%
Not sure
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
51
Appendix B
Questions
Total
Financial
Services
Manufacturing
Retail
Other
Target
Firm
Retail/
Other
Combined
652-On a scale from 1 to 10 where “1” means “Integrated very poorly” and “10” means “Integrated
very well”, please rate how well your marketing database and customer relationship packages are
integrated with your in-house printing technology.
Base: respondent integrated db with in-house
printing technology
n=55
n=12
n=27
n=4
n=12
n=16
6.2
7.5
5.7
6.0
6.0
6.0
Percent respondents who indicated a 10 or 9
15%
33%
4%
0%
25%
19%
Percent respondents who indicated a 1 or 2
7%
0%
11%
0%
25%
6%
15%
33%
4%
0%
0%
19%
9-
0%
0%
0%
0%
0%
0%
8-
25%
17%
37%
50%
8%
13%
7-
9%
33%
0%
0%
25%
6%
6-
13%
0%
15%
0%
17%
19%
5-
13%
0%
15%
25%
0%
19%
4-
2%
0%
4%
0%
8%
0%
3-
16%
17%
15%
25%
17%
19%
2-
4%
0%
0%
0%
0%
0%
1- Integrated very poorly
4%
0%
0%
0%
8%
6%
Mean
10-Integrated very well
660-In your opinion, what does your firm need in order to create an enterprise-wide solution to more
effectively leverage the information about your customers with your marketing messages? Due to a wide
variety of responses, only the top 10 were published. (Multiple responses, n=188)
Base: respondents who maintain a database
internally or outsource
n=164
CRM package
17%
Clean customer database
9%
More resources
9%
Nothing
9%
Better internal communication and training
8%
Training and education
7%
Additionall staff and MIS support
7%
Web based CRM
7%
Money
Larger budget
Total
52
7%
6%
86%
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
A p p endix B
Questions
Total
Financial
Services
Manufacturing
Retail
Other
Target
Firm
Retail/
Other
Combined
700-Next, we would like to discuss print media. Does your advertising agency buy printing on your behalf?
Base
n=205
n=55
n=100
n=21
n=29
n=50
Not sure
1%
2%
2%
0%
0%
0%
Decline to answer
3%
4%
1%
0%
10%
6%
Yes
36%
42%
35%
33%
27%
30%
No
64%
58%
65%
67%
73%
70%
705-Who typically makes the choice in printing service provider selection?
Base: advertising agency buys printing
n=70
n=22
n=34
n=7
n=7
n=14
Advertising agency
31%
32%
32%
29%
29%
29%
Our company
26%
18%
26%
29%
43%
36%
Our company and the advertising agency make a
joint decision
43%
50%
41%
43%
29%
36%
n=205
n=55
n=100
n=21
n=29
n=50
Not sure
1%
0%
3%
0%
0%
0%
Decline to answer
3%
2%
2%
10%
3%
6%
32%
26%
34%
47%
25%
34%
3%
4%
3%
0%
0%
0%
We primarily print in-house, we only outsource for
a particular print process (ex., wide format)
28%
22%
28%
16%
43%
32%
We outsource all of our printing to a print provider
34%
35%
33%
37%
32%
34%
5%
13%
2%
0%
0%
0%
710-What are your company’s printing capabilities?
Base
We do all the design work in-house and
outsource print production
We print everything in-house
We deal with a broker
715-How many commercial printers does your company work with at any one time?
Base: respondents not printing
everything in-house
n=200
n=53
n=97
n=21
n=29
n=50
1
26%
4%
18%
1%
4%
5%
2
27%
8%
13%
3%
3%
6%
3
24%
7%
8%
4%
4%
8%
4
6%
3%
1%
0%
2%
2%
5
8%
2%
4%
2%
1%
3%
6
6%
1%
4%
0%
1%
1%
7
1%
1%
0%
0%
1%
1%
8
1%
1%
1%
0%
0%
0%
10
1%
0%
0%
1%
0%
1%
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
53
Appendix B
Total
Financial
Services
Manufacturing
Retail
Other
Target
Firm
Retail/
Other
Combined
12
1%
1%
0%
0%
0%
0%
20
1%
1%
0%
0%
0%
0%
Questions
720-On average, what is the typical length of a relationship between your company
and a printing service provider?
Base: respondents working with one or more
commercial printers
n=190
n=51
n=92
n=19
n=28
n=47
1-5 years
61%
13%
28%
8%
12%
20%
6-10 years
28%
11%
14%
2%
2%
4%
11-15 years
4%
2%
2%
0%
0%
0%
16-20 years
5%
2%
3%
1%
0%
1%
21-25 years
2%
0%
1%
0%
1%
1%
50 years
1%
0%
1%
0%
0%
0%
725-In the past year, have you started using a new or additional printing service provider?
Base: respondents not printing
everything in-house
n=200
n=53
n=97
n=21
n=29
n=50
2%
0%
3%
5%
0%
2%
Yes
39%
36%
37%
60%
38%
47%
No
61%
64%
63%
40%
62%
53%
Not sure
730-Using a scale from 1 to 10, where 1 means “Not at all important” and 10 means “Very important”,
please rate the importance of each of the following when selecting a printing service provider.
(Percentage indicates percent of respondents who assigned an importance rating of 8, 9, or 10)
Base
n=205
n=55
n=100
n=21
n=29
n=50
Price
73%
77%
72%
71%
69%
70%
Print quality
88%
87%
89%
90%
86%
88%
The specific printing technology used by
the provider
39%
29%
40%
48%
45%
46%
Turnaround time
78%
83%
70%
90%
83%
86%
Geographic proximity
42%
40%
40%
50%
45%
47%
Ease of doing business
85%
85%
83%
81%
93%
88%
Dependability
92%
91%
91%
90%
97%
94%
Unique capabilities
25%
32%
22%
29%
21%
24%
Personalization
39%
42%
38%
29%
45%
38%
Binding and finishing capabilities
44%
42%
41%
38%
59%
50%
Ability to print on a wide range of paper stocks
46%
49%
39%
57%
52%
54%
735-How often for the following situations or marketing objectives do you recommend print as a marketing
communication tool? Please indicate always, sometimes or never. (Results reflect responses of “Always”)
54
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
A p p endix B
Questions
Total
Financial
Services
Manufacturing
Retail
Other
Target
Firm
Retail/
Other
Combined
Lead generation
25%
22%
28%
15%
31%
24%
Customer acquisition
25%
31%
21%
35%
21%
27%
Customer retention/loyalty
26%
33%
21%
35%
28%
31%
Brand positioning
28%
33%
26%
35%
21%
27%
Cross selling/up selling
19%
25%
19%
10%
14%
12%
Increase brand awareness
41%
38%
46%
38%
31%
34%
Introduce a new product
62%
62%
73%
30%
45%
39%
Promotions or special offers
42%
49%
36%
65%
34%
47%
To drive retail traffic
23%
24%
13%
57%
26%
40%
Sales support
41%
24%
50%
45%
38%
41%
800-Now we have just a few final questions relating to you and your firm. How would you characterize
the nature of your firm? Would you say it is a … ?
Business-to-business company
67%
33%
100%
14%
55%
38%
Business-to-consumer company
23%
42%
0%
76%
28%
48%
Both
10%
25%
0%
10%
17%
14%
805-What is the size of your firm in terms of the number of domestic employees?
Decline to answer
1%
0%
3%
0%
0%
0%
Less than 100
39%
36%
36%
45%
48%
47%
100-499
33%
40%
35%
5%
34%
22%
500-999
8%
9%
8%
5%
7%
6%
1,000-4,999
13%
9%
15%
20%
7%
12%
5,000-9,999
2%
4%
1%
5%
3%
4%
10,000 +
4%
2%
4%
20%
0%
8%
815-What is the highest level of education you have completed or the highest degree you have received?
Decline to answer
1%
0%
1%
5%
3%
4%
High school or equivalent (e.g. GED)
1%
0%
3%
0%
0%
0%
Some college, but no degree
4%
4%
5%
0%
4%
2%
Associate’s degree
5%
5%
7%
0%
4%
2%
57%
53%
54%
65%
71%
69%
1%
2%
1%
5%
0%
2%
31%
36%
30%
30%
21%
25%
Male
67%
42%
80%
67%
72%
70%
Female
33%
58%
20%
33%
28%
30%
College (e.g. BA, BS)
Some graduate school, but no degree
Graduate school (e.g. MS, MD, PhD)
830-Gender
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
55
56
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
Appendi x C:
Results by Marke ting
Communication Budget Size
Answers highlighted have a significance of p=.05 or better.
Marketing Budget Size
Total
Under
$1 million
Over
$1 million
Base
n=143
n=106
n=37
1-20
19%
17%
24%
21-60
19%
26%
0%
61-120
16%
17%
14%
121-240
17%
18%
14%
241-1000
20%
20%
19%
1001+
10%
3%
30%
Financial services firm
27%
25%
29%
Manufacturing firm
49%
55%
29%
Retail firm
10%
4%
27%
Other target firm
14%
14%
15%
Questions
345- Size of firm (number of employees)
350- Firm type
425- Which of the following best describes your role in the selections of media
for your company’s marketing campaigns?
You are the sole decision maker regarding the selection of media
for your company’s marketing campaigns
27%
29%
22%
You are one of a group of decision makers
67%
65%
71%
6%
6%
6%
You recommend strategies for the selection of media, but you have no role
in the final decision
500- First, we’d like to discuss your company’s marketing communications strategy.
What is the size of your marketing communications budget for the U.S. market in dollars?
Net answering
Not sure or declined to answer
n=163
n=114
n=49
42
Less than $449,999
55%
79%
0%
$450,000-$999,999
15%
21%
0%
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
57
Appendix C
Marketing Budget Size
Questions
Total
Under
$1 million
Over
$1 million
$1,000,000-$9,999,999
20%
0%
67%
$10,000,000 or more
10%
0%
33%
505- What is the approximate size of your marketing budget for the U.S. market as a percent of revenue?
Net answering
n=141
n=100
n=41
Not sure or declined to answer
38
0% of revenue
6%
8%
2%
1-4% of revenue
57%
55%
61%
5-9% of revenue
16%
16%
17%
10-14% of revenue
9%
9%
10%
15-100% of revenue
11%
12%
10%
Yes
12%
12%
14%
No
88%
89%
86%
Yes
50%
44%
63%
No
50%
56%
37%
n=109
n=50
n=31
1
62%
64%
58%
2
22%
20%
16%
3+
16%
16%
16%
510- Does this budget include sales force compensation and support?
515- In the last year, did you use the services of an advertising agency?
520- How many different agencies did you use?
Base respondents
525- What services did agency #1 provide? (indicate all that come to mind)
Graphic design
47%
48%
45%
Brand consulting
28%
26%
32%
Corporate identity
30%
30%
29%
Creative development
53%
52%
55%
Customer relationship management
10%
8%
13%
Digital branding/Web development
31%
32%
29%
Direct marketing
32%
32%
32%
Media planning/Buying
43%
46%
39%
Public relations
21%
20%
23%
Sales promotion/collateral development
37%
36%
39%
Advertising production/Print production
57%
60%
52%
58
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
A p p e ndix C
Marketing Budget Size
Questions
Total
Under
$1 million
Over
$1 million
Trade show services
17%
22%
10%
Other services
41%
38%
45%
900- Is agency #1 on retainer, or do you work with them on a project-by-project basis?
Base: respondents using an ad agency
Decline to answer
n=81
n=50
n=31
1
On retainer
28%
22%
39%
Project-by-project basis
72%
78%
61%
Graphic design
45%
44%
46%
Brand consulting
16%
17%
15%
Corporate identity
23%
28%
15%
Creative development
48%
44%
54%
Customer relationship management
13%
11%
15$
Digital branding/Web development
16%
17%
15%
Direct marketing
29%
33%
23%
Media planning/Buying
26%
28%
23%
Public relations
10%
11%
8%
Sales promotion/collateral development
23%
22%
23%
Advertising production/Print production
42%
44%
39%
Trade show services
16%
11%
23%
Other services
23%
22%
23%
527-What services did agency #2 provide?
905- Is agency #2 on retainer, or do you work with them on a project-by-project basis?
Base: respondents using an ad agency
n=31
n=18
n=13
On retainer
16%
17%
15%
Project-by-project basis
84%
83%
85%
31%
38%
20%
Brand consulting
8%
0%
20%
Corporate identity
0%
0%
0%
46%
38%
60%
Customer relationship management
8%
0%
20%
Digital branding/Web development
8%
13%
0%
23%
25%
20%
529-What services did agency #3 provide?
Graphic design
Creative development
Direct marketing
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
59
Appendix C
Marketing Budget Size
Questions
Total
Under
$1 million
Over
$1 million
Media planning/Buying
15%
0%
40%
0%
0%
0%
Sales promotion/collateral development
23%
13%
40%
Advertising production/Print production
39%
25%
60%
Trade show services
15%
13%
20%
Other services
39%
50%
20%
Public relations
910- Is agency #3 on retainer, or do you work with them on a project-by-project basis?
Base: respondents using an ad agency
n=13
n=8
n=5
On retainer
15%
13%
20%
Project-by-project basis
85%
88%
80%
535- In the majority of marketing campaigns you have been involved in with your firm,
are you PROVIDING action for the agency, or TAKING action from the agency?
Base: respondents using an ad agency
n=109
Net answering
n=80
n=49
n=31
Providing direction to the agency
65%
63%
68%
Taking direction from the agency
3%
3%
3%
30%
31%
29%
3%
4%
0%
It is a collaborative interaction
It all depends on the nature of the situation of the campaign
550- Now I’m going to read a list of media types. Please tell me, in the last year,
what percent of your media budget was spent on each?
Please keep in mind that the percentage spent across all media should add up to 100%.
Base
n=162
n=113
n=49
Print advertising
34%
34%
32%
Direct mail
15%
16%
14%
Radio advertising
3%
2%
6%
Television advertising
4%
3%
6%
Outdoor or transit advertising
2%
2%
3%
Internet-based activities
15%
17%
11%
Sales collateral
16%
15%
18%
Email campaigns
5%
5%
5%
Other media
6%
7%
6%
Yes
39%
46%
25%
No
61%
54%
76%
555- In the past year, has your firm changed its marketing strategy
that resulted in a change of the media mix?
60
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
A p p e ndix C
Marketing Budget Size
Total
Under
$1 million
Over
$1 million
n=64
n=52
n=12
To save money
11%
12%
8%
To reach a new target market
11%
8%
25%
To “spice up” the look of our advertising
2%
2%
0%
To execute a new strategy
9%
10%
8%
To identify prospects
6%
8%
0%
81%
83%
75%
Questions
560- What were the reasons for the change in your firm’s strategy?
Base: strategy change resulted in media mix change
Other
565- Was the recommendation to change the media mix initiated by the advertising agency or your firm?
Base: strategy change resulted in media mix change
Advertising agency
Firm
A collaborative effort between the agency and your firm
n=62
n=51
n=11
5%
6%
0%
92%
92%
91%
3%
2%
9%
570- Using a 5-point scale where 1 means “Completely Disagree” and 5 means “Completely Agree”,
please indicate the extent to which you agree or disagree with the following statements.
(Percentage indicates percent of respondents who responded with an agreement rating of 4 or 5)
Base
Broadcast media advertising is best for brand building
n=155
n=106
n=49
40%
33.9%
53.1%
When the company needs to know the direct ROI from a campaign,
I use a direct response medium
31.6%
29.0%
37.5%
Given the new design and production technologies, our company is increasing
the in-house printing of our own sales collateral
41.8%
45.6%
32.6%
I am aware of the new print technology capabilities for personalization
61.1%
53.1%
79.6%
Targeted campaigns outperform mass-market campaigns
82.1%
83.2%
79.5%
28%
26.6%
31.1%
Broadcast media advertising is best for driving store traffic
27.8%
29.1%
25.0%
I have been shown samples of printed communication material to illustrate
the capabilities of new technologies by an ad agency
32.7%
30.6%
37.5%
My advertising agency has presented creative ideas for personalization strategies
35.5%
34.0%
39.0%
We get better response rates with email campaigns than printed mail
572- Using a scale from 1 to 10, where “1” means “No impact at all” and “10” means “An extremely
positively impact”, please rate the following five attributes in terms of the impact that personalized
communication has had on each attribute. (Percentage indicates respondents who indicated an 8, 9, or 10)
Reducing print and mailing costs
36%
34%
41%
Improving the reader’s ability to locate information
38%
36%
43%
Improving response rates
43%
40%
50%
Improving customer retention
49%
45%
58%
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
61
Appendix C
Marketing Budget Size
Questions
Total
Under
$1 million
Over
$1 million
Improving the reader’s ability to understand and retain information
32%
34%
27%
n=161
n=112
n=49
Yes
75%
75%
74%
No
25%
25%
26%
n=84
n=36
575- Have you ever used personalized communication in your marketing campaigns?
Net answering
580- In the past year, what percentage of your campaigns involved personalized
communication with your customer?
Base: has personalized communication
n=120
0%
4%
5%
3%
1-4%
8%
5%
14%
5-9%
13%
12%
14%
10-14%
13%
16%
8%
15-19%
3%
2%
6%
20-29%
16%
12%
25%
30-39%
7%
7%
6%
40-49%
7%
8%
3%
50-69%
9%
10%
8%
70-99%
16%
19%
8%
5%
5%
6%
100% or more
582- Now, I am going to read a list of extents to which you might personalize communications.
Please distribute 100 points among these five items to indicate how often you produce personalized
communications and to what degree they are personalized.
Base: has used personalized communication
n=103
n=72
n=31
Variable address and/or salutation
48%
45%
57%
Variable address and/or numerical information that goes into dynamic fields
19%
19%
19%
Variable address, text and/or numerical information that goes into dynamic fields
15%
16%
12%
Variable text or numerical information and graphics
11%
13%
7%
8%
9%
5%
Variable text or numerical information and variable graphics
585- What are the obstacles to using personalized communications in your marketing campaigns?
Base: Those who have not used personalized communications
n=41
n=28
n=13
Lack of a suitable database
10%
7%
15%
Cost
20%
18%
23%
Design constraints/Lack of creative flexibility
2%
4%
0%
Lack of knowledge of agency
0%
0%
0%
62
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
A p p e ndix C
Marketing Budget Size
Total
Under
$1 million
Over
$1 million
Lack of need
7%
7%
8%
Our own lack of experience with this new approach
3%
0%
7%
Lack of results
2%
4%
0%
Lack of awareness
7%
7%
8%
56%
54%
62%
Questions
Some other obstacle
590- Now we would like to discuss how your firm typically measures the results of a campaign.
I am going to read you a list of ways in which you may or may not measure a campaign. For each,
please indicate if you always, sometimes, or never use this method. Results indicate “always.”
Base
n=164
n=114
n=149
Sales leads
49%
56%
35%
Number of orders placed
45%
43%
49%
Change in sales (before/after measures)
51%
47%
59%
Change in the number of calls to an 800 number
15%
16%
13%
Change in the number of hits to a website
25%
27%
20%
Response rate of a direct mail piece
43%
41%
49%
Retail traffic/store counts
12%
6%
26%
Post-advertising awareness measure
11%
12%
10%
Customer retention
32%
31%
35%
Other methods
13%
11%
17%
595- Who typically measures the results of an ad campaign? You, the advertising agency, or a third party?
Net answering
n=163
n=114
n=49
77%
72%
77%
The advertising agency
1%
9%
0%
A third party
9%
2%
10%
13%
11%
18%
93%
97%
86%
Outsource
6%
2%
14%
We do not have a database of customers
1%
2%
0%
You
A collaborative effort
600- Now we would like to change the topic and discuss marketing databases.
Do you maintain a database of your customers internally, or do you outsource it?
Maintain internally
605- How often is the database updated, either with new customers or updates of current customers,
such as sales transactions, contact with sales force, etc.
Net answering
n=158
n=110
n=48
Hourly
11%
9%
15%
Daily
48%
51%
40%
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
63
Appendix C
Marketing Budget Size
Questions
Total
Under
$1 million
Over
$1 million
Weekly
15%
15%
15%
Monthly
19%
17%
23%
Semi-annually
3%
2%
6%
Annually
4%
5%
2%
610- How does the new data get entered into the database?
Base: respondents who maintain a database internally or outsource
n=161
n=113
n=48
Website data capture of visitors or online ordering
48%
44%
56%
A telephone sales representative enters the data (e.g. call centers)
58%
55%
65%
Manual data entry from paper forms
79%
80%
76%
Automatic data entry via email contact with customers
39%
37%
47%
Data collection at retail outlets
24%
16%
43%
Downloading from outsourcing services vendor (e.g. fulfillment service)
30%
25%
43%
Other
15%
13%
18%
620- Using a scale of 1-5, where “1” means: “Needs extensive cleaning” and “5” means:
“Clean, no additional cleaning is needed”, how clean is the data you pull from your customer database?
Base: respondents who maintain a database internally or outsource
n=158
n=112
n=46
5- Clean, no additional cleaning is needed
20%
20%
20%
4
37%
40%
30%
3
26%
22%
35%
2
12%
12%
13%
4%
5%
2%
1- Needs extensive cleaning
627- Do you use a CRM system?
Base: respondents who maintain a database internally or outsource
n=158
n=112
n=46
144
103
41
Yes
26%
24%
29%
No
74%
75%
71%
Net answering
630- Which of the following capabilities do you use in managing your customer database?
Base: respondents who maintain a database internally or outsource
Digital asset manager
n=158
n=112
n=46
7%
5%
10%
Data mining
29%
25%
41%
Campaign management
29%
22%
45%
Sales force management software
57%
57%
55%
Data cleansing software
19%
13%
33%
64
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
A p p e ndix C
Marketing Budget Size
Questions
Total
Under
$1 million
Over
$1 million
None of these
23%
27%
14%
4%
3%
8%
Not sure
640- Does your firm have in-house print capabilities?
Net answering
n=164
n=114
n=49
Yes
55%
59%
45%
No
45%
39%
55%
645- Which of the following in-house capabilities do you use to communicate with your customers?
Respondents having in-house print capabilities
n=89
n=67
n=22
In-line ink jet printing (e.g. for financial statements billing)
66%
67%
64%
Offset printing (lithography)
19%
16%
27%
Digital color/production copiers
66%
61%
82%
Black and white copier (e.g. Xerox)
90%
90%
91%
Laser printing
93%
93%
96%
Other
6%
5%
0%
Not sure
0%
0%
0%
650- Do you integrate your marketing database and customer relationship packages with your
in-house printing technology?
Respondents having in-house print capabilities
n=88
n=66
n=22
Yes
51%
55%
41%
No
49%
46%
59%
6.5
5.4
6.5
19%
27%
0%
9
0%
0%
0%
8
26%
27%
23%
7
7%
7%
8%
6
14%
17%
8%
5
14%
7%
31%
4
2%
0%
8%
3
14%
10%
23%
2
2%
3%
0%
1- Integrated very poorly
2%
3%
0%
652- On a scale of 1 to 10 where “1” means “Integrated very poorly” and “10” means
“Integrated very well”, please rate how well your marketing database and customer
relationship packages are integrated with your in-house technology.
Mean
10- Integrated very well
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
65
Appendix C
Marketing Budget Size
Questions
Total
Under
$1 million
Over
$1 million
700- Next we would like to discuss print media. Does you ad agency buy print media on your behalf?
Net answering
n=157
n=109
n=48
Not sure
0%
0%
0%
Decline to answer
0%
0%
0%
Yes
32%
29%
41%
No
68%
71%
59%
n=51
n=30
n=21
Advertising agency
33%
42%
20%
Our company
24%
29%
15%
Advertising agency and our company make a joint decision
43%
29%
65%
n=159
n=112
n=47
705- Who typically makes the choice in printing service provider selection?
Base: advertising agency buys printing
710- What are your company’s printing capabilities?
Base
Not sure
0%
0%
0%
Decline to answer
0%
0%
0%
33%
31%
38%
2%
3%
0%
We primarily print in-house, we only outsource for a particular process
29%
36%
13%
We outsource all of our printing to a print provider
30%
25%
43%
6%
5%
6%
We do all the design work in-house and outsource print production
We print everything in-house
We deal with a broker
715- How many commercial printers does your company work with at any one time?
Base: respondents not printing everything in-house
n=156
n=109
n=47
1
28%
34%
13%
2
25%
27%
21%
3
24%
20%
34%
4
6%
6%
6%
5
8%
6%
13%
6
6%
5%
11%
8
1%
1%
2%
12
1%
1%
0%
720- On average, what is the length of a relationship between your company and a printing service provider?
Base: respondents working with one or more commercial printers
1-5 years
66
n=154
n=107
n=47
59%
58%
62%
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
A p p e ndix C
Marketing Budget Size
Questions
Total
Under
$1 million
Over
$1 million
6-10 years
25%
25%
26%
11-15 years
4%
5%
2%
16-20 years
5%
4%
9%
21-25 years
1%
2%
0%
26-50 years
1%
1%
0%
Over 50 years
3%
4%
2%
725- In the past year have you started using a new or additional printing service provider?
Base: respondents not printing everything in-house
Not sure
n=160
n=112
n=48
2%
3%
0%
Yes
38%
35%
44%
No
61%
63%
56%
730- Using a scale from 1 to 10 (10 is most important), please rate the importance of each of the following
when selecting a printing service provider. (Percentage indicates respondents who selected an 8, 9, or 10)
Base
n=160
n=111
n=49
Price
72%
77%
61%
Print quality
89%
89%
88%
The specific printing technology used by the provider
35%
35%
34%
Turnaround time
81%
78%
90%
Geographic proximity
43%
41%
46%
Ease of doing business
86%
87%
84%
Dependability
91%
91%
92%
Unique capabilities
25%
23%
29%
Personalization
39%
40%
35%
Binding and finishing capabilities
41%
43%
35%
Ability to print on a wide range of paper stocks
44%
36%
61%
735- How often for the following situations or marketing objectives do you recommend print
as a marketing communication tool? (Results reflect responses of “Always”)
Lead generation
25%
28%
17%
Customer acquisition
26%
25%
27%
Customer retention/loyalty
25%
28%
17%
Brand positioning
25%
24%
27%
Cross selling/Up selling
19%
22%
10%
Increase brand awareness
41%
42%
37%
Introduce a new product
64%
67%
56%
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
67
Appendix C
Marketing Budget Size
Questions
Total
Under
$1 million
Over
$1 million
Promotion or special offers
43%
44%
40%
To drive retail traffic
22%
20%
26%
Sales support
41%
43%
37%
800- Now we have just a few final questions relating to you and your firm.
How would you characterize the nature of your firm? Would you say it is a….?
Business-to-business company
38%
39%
37%
Business-to-consumer company
41%
33%
51%
Both
21%
28%
11%
805- What is the size of your firm in terms of the number of domestic employees?
Less than 100
40%
50%
17%
100 to 499
34%
35%
31%
500 to 999
8%
6%
13%
12%
7%
23%
5,000-9,999
1%
1%
2%
10,000+
5%
1%
15%
1,000 to 4,999
815- What is the highest level of education you have completed or the highest degree you have received?
High school or equivalent
1%
0%
2%
Some college, but no degree
4%
6%
0%
Associate’s degree
4%
5%
2%
Bachelor’s degree
57%
53%
66%
1%
1%
2%
33%
35%
28%
Male
68%
69%
63%
Female
33%
31%
37%
Some graduate school, but no degree
Graduate school
830- Gender
68
Copyright 2003 Printing Industry Center at RIT— All rights reserved.
Rochester Institute of Technology
College of Imaging Arts and Sciences
55 Lomb Memorial Drive
Rochester, NY 14623
Phone: (585) 475-2733
Fax: (585) 475-7279
http://print.rit.edu